Who is liable?
The Finance Act 1999 introduced a withholding tax to apply to dividends paid by Irish companies on or after 6 April 1999.
Irish Life & Permanent plc is therefore obliged to deduct DWT at the standard rate of income tax (currently 20%) from dividends paid on or after that date.
Irish resident shareholders are subject to DWT. However, certain other categories of shareholders are entitled to receive their dividends without deduction of DWT.
The following categories of Irish resident shareholders are entitled to claim exemption from DWT:
1) a company which is resident in Ireland for tax purposes;
2) an Irish exempt approved pension scheme;
3) an Irish collective investment undertaking;
4) an employee share ownership trust;
5) an exempt charity resident in Ireland.
Exemption from DWT may be claimed by submitting a completed Composite Resident Form, which may be obtained from the Company’s Registrar.