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Corporation Tax (CT)

Dividends

Dividends and other distributions are not deductible when calculating a company’s trading profits. Generally, there is no CT due on dividends paid by one Irish resident company to another. Most Irish resident companies who pay out dividends are charged Dividend Withholding Tax (DWT).

Generally, CT is due when a non-Irish resident company pays a dividend or other distribution to an Irish resident company. A lower rate of CT may apply where a foreign dividend is paid out of trading profits and other qualifying conditions are met. Guidance on this relief is available in Tax and Duty Manual 02-02-03a. Certain foreign-sourced distributions are exempt from CT when they meet the qualifying conditions for the participation exemption. 

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Published: 07 May 2025 Print this page

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