Dividend Withholding Tax (DWT)
Exemptions for non-residents
A qualifying non-resident person can claim an exemption from DWT.
Qualifying non-resident persons are:
- Persons, other than companies, who are neither resident nor ordinarily resident in the State. These persons can include superannuation funds and charities. They must be resident for tax purposes in a relevant territory:
- Companies resident in a relevant territory that are neither directly nor indirectly controlled by an Irish resident person.
- Companies not resident in the State that are controlled by persons resident for tax purposes in a relevant territory.
- Companies not resident in the State and their principal class of shares are substantially and regularly traded on:
- a stock exchange in the State
- one or more than one recognised stock exchanges in a relevant territory or territories
- such other stock exchange as may be approved of by the Minister for Finance.
- Companies not resident in the state who are a 75% subsidiary of another company. Where the parent company’s principal class of shares are substantially and regularly traded on either:
- a stock exchange in the State
- one or more than one recognised stock exchanges in a relevant territory or territories
- such other stock exchange as may be approved of by the Minister for Finance.
- Companies not resident in the state that are wholly owned by two or more companies. Where their principal class of shares are substantially and regularly traded on either:
- a stock exchange in the State
- one or more than one recognised stock exchanges in a relevant territory or territories
- such other stock exchange as may be approved of by the Minister for Finance.
To claim an exemption
Exemption from DWT is not an automatic entitlement. To claim an exemption a qualifying non-resident person must complete the relevant exemption declaration form:
- Form V2B, if they are a company
- Form V2A, if they are an individual
- Form V2C, if they are a body of persons (and not an individual or company).
Forms V2A and V2C must be certified by the tax authority of the country in which the qualifying non-resident person is resident.
The exemption is valid until 31 December of the fifth year following the year that exemption was issued. If the qualifying non-resident person wants the DWT exemption to continue, they must renew the exemption before the end of this period.
An exempt shareholder must provide the exemption declaration form to either:
- the Irish company or Authorised Withholding Agent (AWA)
- the Qualifying Intermediary (QI) that made the dividend payment.
There is a simplified process for US residents to receive American Depository Receipts (ADRs) dividends without deduction of DWT. Please contact the DWT Unit for more information.
Next: Refunds for non-residents