Tax Tips August 2018
Interest without the deduction of income tax
- 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;
- 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.
- 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.
- Interest paid in the State to an investment undertaking within the meaning of section 739B of the TCA 1997.
- Interest paid to a person, in respect of a relevant security, whose usual place of residence is outside the State.
- Interest paid in the State to a qualifying company within the meaning of section 110 of the TCA 1997.
- Interest paid by a company authorised by the Revenue Commissioners to pay interest without the deduction of income tax.
- Interest paid to directors and directors associates which are treated as distributions under section 437 of the TCA 1997.