IRELAND Law and Practice Contributed by: Andrew Quinn, David Burke, William Fogarty and Lynn Cramer, Maples Group
9.14 Offshore IP Provisions Payments of patent royalties by an Irish resident company are typically subject to withholding tax at 20%. Patent royalties paid to associated companies resident in another EU member state or paid in the course of a trade or business to a company resident in a country with which Ireland has a double tax treaty are generally exempt from withholding tax. Irish Rev - enue issued a Statement of Practice in 2010, which effectively extends the relief from withholding tax on certain patent royalties paid to non-treaty countries. To avail of the exemption, certain conditions must be met, including the fact that the royalty must be paid in respect of a foreign patent and the payment must be made in the course of the Irish paying com - pany’s trade. Prior approval from Irish Revenue will be required. Ireland’s outbound payments rules, which took effect from 1 April 2024, apply to royalty pay - ments to associated entities in Specified Territories for copyrights, trade marks, designs or models, plans, secret formulae or processes.
ies who facilitate transactions by EU customers. It will add digital financial products such as central bank digital currencies (CBDCs) to the scope of report - ing under the existing DAC framework, to reflect the updated OECD Common Reporting Standard. DAC8 will also build on the EU’s objective to promote global tax transparency in the digital market as it is expected to operate in conjunction with the existing EU Regula - tion of Markets in Crypto Assets (MiCA). These new reporting requirements on crypto-assets, e-money and CBDCs entered into force on 1 January 2026 through DAC8. 9.13 Approach to Digital Services Taxation The Irish government opposed the EC’s interim pro - posal for a “digital economy tax”, with the Irish Min - ister for Finance referencing the OECD reports on digital taxation and the need for broader international consensus on this issue, rather than EU focused measures. The Irish government also published a reasoned opinion on 16 May 2018, addressed to the President of the EU Council, questioning the necessity of these measures. Accordingly, Ireland does support the OECD Pillar One initiative (see 9.2 Government Policy and Objectives Approach ).
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