Revenue eBrief No. 022/21

05 February 2021

Encashment Tax - Increase in rate and withdrawal of an exemption

Tax and Duty Manual Schedule 2.1 - Encashment Tax - has been updated to reflect that, as and from the 1st January 2021:

  • the rate of encashment tax has increased to 25%
  • encashment tax does not apply on certain payments to companies
  • the exemption from the obligation to deduct encashment tax previously given in respect of British commercial dividends has been withdrawn.