Investors in Ireland must prepare for increased withholding tax rates in 2020 as Ireland increases the withholding tax rate in an effort to create a revenue boost to their exchequer.
The dividend withholding tax percentage increased from the previous 20% to 25% and has been effective since 1 January 2020. The Irish Times reported that the move will come as a surprise to tax practitioners as it was not speculated as likely in advance of the budget and appears to be one of many revenue raising measures for 2020 which emerged late in negotiations.
Foreign legal and natural persons with investments in Ireland will now suffer tax at the higher rate of 25%. Ultimately, should a company have existing procedures to claim the Irish Withholding Tax rightfully owed, then they can expect an extra 5% in refund yield.
However, should a business have no strategy or process in place to claim Irish Withholding Tax on dividends, interest or REITs, then there has never been a better time to implement one.
WTax is able to provide an outsourced solution for Irish withholding tax recovery. To claim back your Irish withholding tax, contact one of our consultants today.