Capital Gains Tax and Double Taxation Relief
The Finance Act 2007 provides for credit relief by Ireland (unilateral credit relief) for tax paid on capital gains in certain countries. The countries concerned are Belgium, Cyprus, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Pakistan and Zambia. In these cases Ireland has a tax treaty that pre-dates the introduction of capital gains tax in the State.
The Finance Act 2007 provides that where a person, whether an individual or a company, who is chargeable to tax in Ireland in respect of a capital gain, is also taxed on the gain in the other country, the foreign tax paid will be credited against the Irish capital gains tax.