Withholding Tax on interest payments

Generally withholding tax, at the standard rate of tax, must be deducted from annual interest payments made by:

  • companies
  • any person to another person whose usual place of living is outside the Republic of Ireland.

Peer to Peer Lending

Interest paid on finance that was raised from peer to peer or crowd funding falls within the withholding tax provisions.

A company paying interest on either of these must deduct tax at the standard rate on the interest payment.

Exemptions or exceptions from the obligation to deduct withholding tax

There are an extensive range of exemptions or exceptions from the obligation to deduct withholding tax. These can be allowed automatically without prior approval from Revenue.

The exemptions or exception do not apply to individuals resident in the state. For more information see Payment and receipt of interest without deduction of income tax.