Ireland to Keep Tight Geographic Scope of Dividend Tax Relief

The Irish government won’t extend its proposal exempting corporations from the foreign dividends tax outside its tax treaty network or Europe.

The proposal, made in April by the Irish Department of Finance, would restrict the exemption’s geographic scope to “EU/EEA or jurisdictions with which Ireland has a double taxation agreement.” EEA countries are those within the European Economic Area including Iceland, Norway, and Lichtenstein.

The government affirmed that stance Tuesday in a second consultation on the proposal. It responded to several concerns from stakeholders about the plan, including it’s geographic scope, or the jurisdictions where Irish subsidiaries can qualify ...