Ireland issues guidance on foreign tax credit for foreign dividends

The Irish government on January 29 released guidance clarifying a law added in the Finance Act 2013 that provides for an additional foreign tax credit for foreign dividends received by Irish companies.

The guidance addresses the calculation of the nominal rate of tax to be used when a dividend has been paid through an intermediate company that has benefited from an exemption on the income out of which the dividend has been paid. It also addresses cases where profits of the paying company are fully relieved from tax due to group relief.

See:

• Revenue eBrief No. 09/15