Finance Act 2025

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Exemption from dividend withholding tax for certain investment limited partnerships

39. (1) Part 6 of the Principal Act is amended—

(a) in section 172A(1)(a), by the insertion of the following definitions:

“ ‘equivalent partnership’ means a partnership which would be an investment limited partnership but for the fact that it is authorised by an EEA state other than the State and is subject to such supervisory and regulatory arrangements in the EEA state by which it is authorised at least equivalent to those applied to an investment limited partnership;

‘investment limited partnership’ means a partnership authorised in accordance with the Investment Limited Partnerships Act 1994 ;”,

and

(b) in section 172C—

(i) in subsection (2), by the insertion of the following paragraph after paragraph (db):

“(dc) subject to subsection (4), an investment limited partnership or equivalent partnership, as the case may be, where—

(i) the partners of the investment limited partnership or equivalent partnership are beneficially entitled to not less than 51 per cent of the ordinary share capital of the company making the relevant distribution,

(ii) the ordinary share capital of the company making the relevant distribution is an asset of that investment limited partnership or equivalent partnership, and

(iii) that investment limited partnership or equivalent partnership has made a declaration, to the company making the relevant distribution, in relation to the relevant distribution in accordance with paragraph 14 of Schedule 2A,”,

(ii) in subsection (3)—

(I) in paragraph (d), by the deletion of “and”,

(II) in paragraph (e), by the substitution of “PEPP assets, and” for “PEPP assets,”, and

(III) by the insertion of the following paragraph after paragraph (e):

“(f) an investment limited partnership or equivalent partnership, as the case may be, which receives a relevant distribution,”,

and

(iii) in subsection (4), by the substitution of “paragraph (bd) or (dc) of subsection (2)” for “subsection (2)(bd)”.

(2) Section 739J of the Principal Act is amended by the insertion of the following subsection after subsection (3A):

“(3B) A statement made under subsection (3) shall be treated as if it satisfies the requirements in respect of the making of a return under section 880, 959I or 959M, as the case may be.”.

(3) Schedule 2A of the Principal Act is amended by the insertion of the following paragraph after paragraph 13:

“Declaration to be made by investment limited partnership or equivalent partnership under section 172C(2)(dc)

14. The declaration referred to in section 172C(2)(dc) shall be a declaration in writing to the company making the relevant distribution in relation to the relevant distributions which—

(a) is made by the person (in this paragraph referred to as ‘the declarer’) beneficially entitled to the relevant distributions in respect of which the declaration is made,

(b) is signed by the declarer,

(c) is made in such form as may be prescribed or authorised by the Revenue Commissioners,

(d) declares that, at the time when the declaration is made, the person beneficially entitled to the relevant distributions is an investment limited partnership or equivalent partnership,

(e) contains the name and tax reference number of the investment limited partnership or equivalent partnership,

(f) contains an undertaking by the declarer that, if the person mentioned in subparagraph (d) ceases to be an excluded person, the declarer will, by notice in writing, advise the company resident in the State in relation to the relevant distributions accordingly, and

(g) contains such other information as the Revenue Commissioners may reasonably require for the purposes of Chapter 8A of Part 6.”.

(4) (a) Subsection (1) and (3) shall apply in respect of a relevant distribution (within the meaning of section 172A of the Principal Act) made on or after 1 January 2026.

(b) Subsection (2) shall apply for the year of assessment 2026 and each subsequent year.