Dividend Withholding Tax

Dividend Withholding Tax

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• • • •Dividend Withholding Tax (DWT) is charged at the standard rate of income tax (currently 20%) on ‘relevant distributions’ made by Irish resident companies. •The tax is also charged on foreign dividends that are distributed through an Irish intermediary company •Relevant distributions include: 

– Cash dividends

– Scrip dividends (Shares in lieu of dividends)

– Non-cash dividends

– Expenses incurred by close companies in providing benefits or facilities for a participator in the company

– Excess interest paid by close companies to directors

 •A Close Company is a company that is controlled by five or fewer participators or is controlled by any number of participators who are directors