Ireland: Modified Rules for Royalty Payments to Non-Residents

Ireland has modified a statement of practice on the payment of royalties under a license agreement. Under certain circumstances, such payments may enjoy tax deduction relief when distributed to a foreign company.

Previously, an advance clearance from the Irish Tax Authority was required in order to obtain such a relief. However, under the new practice, royalty payments made on or after October 18, 2016, will only require a notification. This notification must be done each accounting year in which relevant royalty payments are made.