Ireland advises of change to tax treatment of royalty income under treaty with Lithuania 

Irish Tax and Customs on April 14 announced that the tax treatment of royalty income under the Ireland-Lithuania tax treaty will change from January 1, 2019, according to the treaty’s “most favored nation clause.”

Lithuania recently agreed to more favorable terms for taxing royalty income with Japan. Those terms are now to apply to the Ireland-Lithuania tax treaty with effect from January 1, 2019, Ireland’s government said.

Ireland’s Tax and Duty Manual Part 35-01-12 was created to explain the change.