Credits you can claim against Capital Acquisitions Tax (CAT)

Double Taxation Relief (US)

The convention between Ireland and the US covers inheritance tax in Ireland and federal estate taxes in the US. It does not apply to gift tax. Neither does it apply to any taxes in the nature of death duties, which may be imposed by US states.  

The convention provides that Ireland cannot tax foreign situate property, unless the disponer died:

  • domiciled in Ireland
  • or
  • non domiciled in the USA.

Therefore an Irish resident beneficiary is not liable to CAT on a benefit of foreign situate property from a US domiciled disponer.

The amount of the credit cannot exceed the amount of Inheritance tax on the doubly taxed property. The credit given is the lesser of the Irish or US tax on that property.

The US convention contains a code called the “Situs Code”, which applies where the deceased died domiciled in Ireland or the US (or both). The code sets out the rules for determining the situs (location) of different classes of property.

Ireland - USA Convention: Situs Code
Class of PropertySitus of Property for Taxation

Immovable property

(such as land and houses)

Place it is located

Tangible moveable property

(such as currency, negotiable bill of exchange, promissory notes)

Place where it is located at the time of death or, if in transit, at the place of destination

Debts due to the deceased, secured or unsecured

(for example, bank accounts, mortgages, dividends, shares in Government or municipal corporations)

Place of domicile of the deceased at the time of death

Shares or stock in a corporation (except Governmental or municipal corporation)

Place where or under the law of which the corporation was created

Policies of insurance and assurance

Place of domicile of the deceased at the time of death

Ships and aircraft (includes shares of these)

Place of registration

Goodwill of business

Place where business carried on

Patents, trademarks and designs

Place of registration

Copyright, franchises and rights of licences to use any copyrighted material, patent, trademark or design

Place where the rights are exercisable

Rights or causes of action ex delicto surviving for the  benefit of an estate of a decedent

Place where such rights or causes of action arose

Judgment debt

Place where judgment is recorded

Next: Unilateral relief