Services to Irish-based Companies

Tax Tips August 2018

Interest without the deduction of income tax

  1. Interest paid in the State on an advance from a bank carrying on a bona fide banking business in the State in the ordinary course of business;

  1. Interest paid in the State by a company to another company which:

a. Advances money in the ordinary course of a trade which includes the lending of money;

b. In whose hands any interest payable in respect of money so advanced is taken into account in computing the trading income of the company;

c. Has notified the appropriate inspector in writing confirming that the company complies with (a) & (b) above and provides the other company with its tax reference number.

  1. Interest paid in the State by a company to which 2(a) and 2(b) apply to another company resident in the State where that other company is deemed to be a member of the same group of companies.

  1. Interest paid in the State to an investment undertaking within the meaning of section 739B of the TCA 1997.

  1. Interest paid to a person, in respect of a relevant security, whose usual place of residence is outside the State.

  1. Interest paid in the State to a qualifying company within the meaning of section 110 of the TCA 1997.

  1. Interest paid by a company authorised by the Revenue Commissioners to pay interest without the deduction of income tax.

  1. Interest paid to directors and directors associates which are treated as distributions under section 437 of the TCA 1997.