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S.I. No. 319/1976 - Double Taxation Relief (Taxes on Income and Capital Gains) (United Kingdom) Order, 1976

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  2. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile Statutory InstrumentsIonstraimí Reachtúla 1976 S.I. No. 319/1976 - Double Taxation Relief (Taxes on Income and Capital Gains) (United Kingdom) Order, 1976 S.I. No. 319/1976 - Double Taxation Relief (Taxes on Income and Capital Gains) (United Kingdom) Order, 1976 AmendmentsLeasuithe S.I. No. 319

1976. DOUBLE TAXATION RELIEF (TAXES ON INCOME AND CAPITAL GAINS) (UNITED KINGDOM) ORDER, 1976 WHEREAS it is enacted by section 361

(1)

the Income Tax Act, 1967 (No. 6

1967), as amended by section 38

(1)

the Capital Gains Tax Act, 1975 (No. 20

1975), and section 166

the Corporation Tax Act, 1976 (No. 7

1976), that if the Government by order declare that arrangements specified in the order have been made with the government

any territory outside the State in relation to affording relief from double taxation in respect

income tax, corporation profits tax, corporation tax or capital gains tax and any taxes

a similar character, imposed by the laws

the State or by the laws

that territory, and that it is expedient that those arrangements should have the force

law, the arrangements shall, notwithstanding anything in any enactment, have the force

law: AND WHEREAS it is further enacted by section 361

(6)

that Act that where such an order is proposed to be made, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving

the draft has been passed by Dáil Éireann: AND WHEREAS a draft

this Order has been laid before Dáil Éireann and a resolution approving

the draft has been passed by Dáil Éireann: NOW, the Government, in exercise

the powers conferred on them by section 361

the Income Tax Act, 1967 (No. 6

1967), as amended by section 38

(1)

the Capital Gains Tax Act, 1975 (No. 20

1975), and section 166

the Corporation Tax Act, 1976 (No. 7

1976), hereby order as follows:

  1. This Order may be cited as the Double Taxation Relief (Taxes on Income and Capital Gains) (United Kingdom) Order,
  2. It is hereby declared— ( a ) that the arrangements specified in the Convention and in the Protocol set out in the Schedule to this Order have been made with the Government

the United Kingdom in relation to affording relief from double taxation in respect

income tax, corporation profits tax, corporation tax or capital gains tax and any taxes

a similar character, imposed by the laws

the State or by the laws

the United Kingdom, and ( b ) that it is expedient that those arrangements should have the force

law. SCHEDULE CONVENTION BETWEEN THE GOVERNMENT

IRELAND AND THE GOVERNMENT

THE UNITED KINGDOM FOR THE AVOIDANCE

DOUBLE TAXATION AND THE PREVENTION

FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS The Government

Ireland and the Government

the United Kingdom; Desiring to conclude a Convention for the avoidance

double taxation and the prevention

fiscal evasion with respect to taxes on income and capital gains; Have agreed as follows:— ARTICLE 1 Personal scope This Convention shall apply to persons who are residents

one or both

the Contracting States. ARTICLE 2 Taxes covered

(1)The taxes which are the subject

this Convention are: ( a ) in Ireland: (

  1. i)the income tax; (
  2. ii)the corporation profits tax; (iii) the corporation tax; and (
  3. iv)the capital gains tax; ( b ) in the United Kingdom: (
  4. i)the income tax; (
  5. ii)the corporation tax; (iii) the petroleum revenue tax; and (
  6. iv)the capital gains tax.

(2)This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date

signature

this Convention in addition to, or in place

, the existing taxes. ARTICLE 3 General definitions

(1)In this Convention, unless the context otherwise requires: ( a ) the term "Ireland" includes any area outside the territorial waters

Ireland which in accordance with international law has been or may hereafter be designated, under the laws

Ireland concerning the Continental Shelf, as an area within which the rights

Ireland with respect to the sea bed and sub-soil and their natural resources may be exercised; ( b ) the term "United Kingdom" includes any area outside the territorial sea

the United Kingdom which in accordance with international law has been or may hereafter be designated, under the laws

the United Kingdom concerning the Continental Shelf, as an area within which the rights

the United Kingdom with respect to the sea bed and sub-soil and their natural resources may be exercised; ( c ) the term "nationals" means: (i) in relation to Ireland, all citizens

Ireland and all legal persons, associations or other entities deriving their status as such from the laws in force in Ireland; (ii) in relation to the United Kingdom, citizens

the United Kingdom and Colonies, British subjects under Section 2

the British Nationality Act 1948 whose notices given under that Section have been acknowledged before the date

signature

this Convention, British subjects by virtue

Section 13

(1)or Section 16

the British Nationality Act 1948 or Section 1

the British Nationality Act 1965, and British protected persons within the meaning

the British Nationality Act 1948; and all legal persons, associations or other entities deriving their status as such from the law in force in the United Kingdom; ( d ) the term "Irish tax" means tax imposed by Ireland being tax to which this Convention applies by virtue

the provisions

Article 2

; the term "United Kingdom tax" means tax imposed by the United Kingdom being tax to which this Convention applies by virtue

the provisions

Article 2

; ( e ) the term "tax" means Irish tax or United Kingdom tax, as the context requires; ( f ) the terms "a Contracting State" and "the other Contracting State" mean Ireland or the United Kingdom, as the context requires; ( g ) the term "person" comprises an individual, a company and any other body

persons; ( h ) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; ( i ) the terms " enterprise

a Contracting State " and " enterprise

the other Contracting State" mean respectively an enterprise carried on by a resident

a Contracting State and an enterprise carried on by a resident

the other Contracting State; ( j ) the term "competent authority" means, in the case

Ireland, the Revenue Commissioners or their authorised representative, and in the case

the United Kingdom, the Commissioners

Inland Revenue or their authorised representative.

(2)As regards the application

this Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws

that Contracting State relating to the taxes which are the subject

this Convention. ARTICLE 4 Fiscal domicile

(1)For the purposes

this Convention, the term "resident

a Contracting State" means, subject to the provisions

paragraphs

(2)and
(3)

this Article, any person who, under the law

that State, is liable to taxation therein by reason

his domicile, residence, place

management or any other criterion

a similar nature; the term does not include any individual who is liable to tax in that Contracting State only if he derives income from sources therein. The terms "resident

Ireland" and "resident

the United Kingdom" shall be construed accordingly.

(2)Where by reason

the provisions

paragraph

(1)

this Article an individual is a resident

both Contracting States, then his status shall be determined in accordance with the following rules: ( a ) he shall be deemed to be a resident

the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident

the Contracting State with which his personal and economic relations are closer (centre

vital interests); ( b ) if the Contracting State in which he has his centre

vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident

the Contracting State in which he has an habitual abode; ( c ) if he has an habitual abode in both Contracting States or in neither

them, he shall be deemed to be a resident

the Contracting State

which he is a national; ( d ) if he is a national

both Contracting States or

neither

them, the competent authorities

the Contracting States shall settle the question by mutual agreement.

(3)Where by reason

the provisions

paragraph

(1)

this Article a person other than an individual is a resident

both Contracting States, then it shall be deemed to be a resident

the Contracting State in which its place

effective management is situated. ARTICLE 5 Permanent establishment

(1)For the purposes

this Convention, the term "permanent establishment" means a fixed place

business in which the business

the enterprise is wholly or partly carried on.

(2)The term "permanent establishment" shall include especially: ( a ) a place

management; ( b ) a branch; ( c ) an

fice; ( d ) a factory; ( e ) a workshop; ( f ) a mine, oil well, quarry or other place

extraction

natural resources; ( g ) an installation or structure used for the exploration

natural resources.

(3)The term "permanent establishment" shall not be deemed to include: ( a ) the use

facilities solely for the purpose

storage, display or delivery

goods or merchandise belonging to the enterprise; ( b ) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

storage, display or delivery; ( c ) the maintenance

a stock

goods or merchandise belonging to the enterprise solely for the purpose

processing by another enterprise; ( d ) the maintenance

a fixed place

business solely for the purpose

purchasing goods or merchandise, or for collecting information, for the enterprise; ( e ) the maintenance

a fixed place

business solely for the purpose

advertising, for the supply

information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.

(4)A person acting in a Contracting State on behalf

an enterprise

the other Contracting State—other than an agent

independent status to whom the provisions

paragraph

(6)

this Article apply—shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name

the enterprise, unless his activities are limited to the purchase

goods or merchandise for the enterprise.

(5)A person carrying on activities in connection with the exploration or exploitation

the sea bed and sub-soil and their natural resources situated in a Contracting State shall be deemed to be carrying on a trade through a permanent establishment in that Contracting State.

(6)An enterprise

a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent

an independent status, where such persons are acting in the ordinary course

their business.

(7)The fact that a company which is a resident

a Contracting State controls or is controlled by a company which is a resident

the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not

itself constitute either company a permanent establishment

the other. ARTICLE 6 Limitation

relief Where under any provision

this Convention income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State, an individual, in respect

the said income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State, and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much

the income as is remitted to or received in that other Contracting State. ARTICLE 7 Income from immovable property

(1)Income from immovable property, including income from agriculture or forestry, may be taxed in the Contracting State in which such property is situated.
(2)( a ) The term "immovable property" shall, subject to the provisions

sub-paragraph (b)

this paragraph, be defined in accordance with the law

the Contracting State in which the property in question is situated. ( b ) The term "immovable property" shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions

general law respecting landed property apply, usufruct

immovable property and rights to variable or fixed payments as consideration for the working

, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

(3)The provisions

paragraph

(1)

this Article shall apply to income derived from the direct use, letting, or use in any other form

immovable property.

(4)The provisions

paragraphs

(1)and
(3)

this Article shall also apply to the income from immovable property

an enterprise and to income from immovable property used for the performance

professional services. ARTICLE 8 Business profits

(1)The profits

an enterprise

a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits

the enterprise may be taxed in the other State but only so much

them as is attributable to that permanent establishment.

(2)Subject to the provisions

paragraph

(3)

this Article, where an enterprise

a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise

which it is a permanent establishment.

(3)In the determination

the profits

a permanent establishment, there shall be allowed as deductions expenses

the enterprise which are incurred for the purposes

the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

(4)Nothing in the foregoing provisions

this Article shall affect any

the provisions

the law

a Contracting State relating specifically to the liability to tax

a life assurance company not having its head

fice in that Contracting State.

(5)No profits shall be attributed to a permanent establishment by reason

the mere purchase by that permanent establishment

goods or merchandise for the enterprise.

(6)Where profits include items which are dealt with separately in other Articles

this Convention, then the provisions

those Articles shall not be affected by the provisions

this Article. ARTICLE 9 Shipping and air transport A resident

a Contracting State shall be exempt from tax in the other Contracting State on profits from the operation

ships or aircraft other than profits from voyages

ships or aircraft confined solely to places in the other Contracting State. ARTICLE 10 Associated enterprises Where ( a ) an enterprise

a Contracting State participates directly or indirectly in the management, control or capital

an enterprise

the other Contracting State, or ( b ) the same persons participate directly or indirectly in the management, control or capital

an enterprise

a Contracting State and an enterprise

the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one

the enterprises, but, by reason

those conditions, have not so accrued, may be included in the profits

that enterprise and taxed accordingly. ARTICLE 11 Dividends

(1)Dividends derived from a company which is a resident

a Contracting State by a resident

the other Contracting State may be taxed in that other Contracting State. Such dividends may also be taxed in the Contracting State

which the company paying the dividends is a resident, and according to the laws

that State, but provided the beneficial owner

the dividends is a resident

the other Contracting State the tax so charged shall not exceed: ( a ) 5 per cent

the gross amount

the dividends if the beneficial owner is a company which controls directly or indirectly 10 per cent or more

the voting power in the company paying the dividends; ( b ) in all other cases 15 per cent

the gross amount

the dividends.

(2)However, as long as an individual resident in a Contracting State is entitled to a tax credit in respect

dividends paid by a company resident in that Contracting State, the following provisions

this paragraph shall apply to dividends paid by a company resident in that Contracting State instead

the provisions

paragraph

(1)

this Article: ( a ) (i) Dividends derived from a company which is a resident

a Contracting State by a resident

the other Contracting State may be taxed in that other Contracting State. (ii) Where a resident

a Contracting State is entitled to a tax credit in respect

such a dividend under sub-paragraph (b)

this paragraph tax may also be charged in the other Contracting State and according to the laws

that other Contracting State, on the aggregate

the amount or value

that dividend and the amount

that tax credit at a rate not exceeding 15 per cent. (iii) Except as provided in sub-paragraph (a) (ii)

this paragraph dividends derived from a company which is a resident

a Contracting State and which are beneficially owned by a resident

the other Contracting State shall be exempt from any tax in the first-mentioned Contracting State which is chargeable on dividends. ( b ) A resident

a Contracting State who receives dividends from a company which is a resident

the other Contracting State shall, subject to the provisions

sub-paragraph (c)

this paragraph and provided he is the beneficial owner

the dividends, be entitled to the tax credit in respect thereof to which an individual resident in that other Contracting State would have been entitled had he received those dividends, and to the payment

any excess

that tax credit over his liability to tax in that other Contracting State. ( c ) The provisions

sub-paragraph (b)

this paragraph shall not apply where the beneficial owner

the dividend is a company which either alone or together with one or more associated companies controls directly or indirectly 10 per cent or more

the voting power in the company paying the dividend. For the purposes

this sub-paragraph two companies shall be deemed to be associated if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third company.

(3)( a ) The provisions

paragraph

(1)

this Article and the provisions

sub-paragraphs (

  1. a)(
  2. ii)and (
  3. a)(iii)

paragraph

(2)

this Article shall not apply to dividends derived from a company which is a resident

a Contracting State by a resident

the other Contracting State if the competent authority

that other Contracting State certifies that such dividends are not subject to tax in that other Contracting State by reason

provisions in the laws

that other Contracting State which afford relief from taxation to charities and superannuation schemes, as such, being provisions which were in force at the date

signature

this Convention or which, if they have been modified since that date, have been modified only in minor respects so as not to affect their general character. Such dividends shall be exempt from any tax in the first-mentioned Contracting State which is chargeable on dividends. ( b ) In this paragraph the term "superannuation scheme" means: (i) in the case

Ireland, a sponsored superannuation scheme within the meaning

Section 235

(9)

the Income Tax Act, 1967 , or a trust scheme or part

a trust scheme approved under Section 235 or Section 235A

that Act; (ii) in the case

the United Kingdom, a sponsored superannuation scheme within the meaning

Section 226

(11)

the Income and Corporation Taxes Act, 1970, or a trust scheme or part

a trust scheme approved under Section 226 or Section 226A

that Act.

(4)The term "dividends" for Irish tax purposes includes any item which under the law

Ireland is treated as a distribution and for United Kingdom tax purposes includes any item which under the law

the United Kingdom is treated as a distribution.

(5)( a ) If the beneficial owner

a dividend, being a resident

one

the Contracting States, owns 10 per cent or more

the class

shares in respect

which the dividend is paid then paragraphs

(1),
(2)and
(3)

this Article shall not apply to the dividend to the extent that it can have been paid only out

profits which the company paying the dividend earned or other income which it received in a period ending 12 months or more before the relevant date. For the purposes

this paragraph the term "relevant date" means the date on which the beneficial owner

the dividend became the owner

10 per cent or more

the class

shares in question. ( b ) The provisions

paragraphs

(1),
(2)and
(3)

this Article shall not apply if: (i) the recipient

the dividend is exempt from tax thereon in the United Kingdom; and (ii) the dividend is paid in such circumstances that, if the recipient were a resident

Ireland exempt from Irish tax, the exemption would be limited or removed. ( c ) The provisions

paragraphs

(1),
(2)and
(3)

this Article shall not apply if: (i) the recipient

the dividend is exempt from tax thereon in Ireland; and (ii) the dividend is paid in such circumstances that, if the recipient were a resident

the United Kingdom exempt from United Kingdom tax, the exemption would be limited or removed. ( d ) The foregoing provisions

this paragraph shall not apply if the beneficial owner

the dividend shows that the shares were acquired for bona fide commercial reasons and not primarily for the purposes

securing the benefit

this Article.

(6)The provisions

paragraphs

(1),
(2)and
(3)

this Article shall not apply where the beneficial owner

the dividends, being a resident

one

the Contracting States, has in the other Contracting State a permanent establishment and the holding by virtue

which the dividends are paid is effectively connected with a business carried on through that permanent establishment. In such a case the provisions

Article 8shall apply.

(7)Where a company which is a resident

one

the Contracting States derives profits or income from the other Contracting State, that other Contracting State may not impose any tax on the dividends paid by the company to persons who are not residents

that other Contracting State, or subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly

profits or income arising in such other Contracting State. ARTICLE 12 Interest

(1)Interest derived and beneficially owned by a resident

a Contracting State shall be taxable only in that State.

(2)The term "interest" as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and other debt-claims

every kind as well as all other income assimilated to income from money lent by the taxation law

the State in which the income arises but shall not include any income which is treated as a distribution under Article 11.

(3)The provisions

paragraph

(1)

this Article shall not apply if the beneficial owner

the interest, being a resident

a Contracting State, has in the other Contracting State a permanent establishment and the debt-claim from which the interest arises is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions

Article 8shall apply.

(4)Where, owing to a special relationship between the payer and the beneficial owner or between both

them and some other person, the amount

the interest paid exceeds for whatever reason the amount which would have been paid in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In that case, the excess part

the payments shall remain taxable according to the law

each Contracting State, due regard being had to the other provisions

this Convention.

(5)The provisions

this Article shall not apply if the debt-claim in respect

which the interest is paid was created or assigned mainly for the purpose

taking advantage

this Article and not for bona fide commercial reasons. ARTICLE 13 Royalties

(1)Royalties derived and beneficially owned by a resident

a Contracting State shall be taxable only in that State.

(2)The term "royalties" as used in this Article means payments

any kind received as a consideration for the use

, or the right to use, any copyright

literary, artistic or scientific work (including cinematograph films, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use

, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

(3)The provisions

paragraph

(1)

this Article shall not apply if the beneficial owner

the royalties, being a resident

a Contracting State, has in the other Contracting State a permanent establishment and the right or property giving rise to the royalties is effectively connected with a business carried on through that permanent establishment. In such a case, the provisions

Article 8shall apply.

(4)Where, owing to a special relationship between the payer and the beneficial owner or between both

them and some other person, the amount

the royalties paid exceeds for whatever reason the amount which would have been paid in the absence

such relationship, the provisions

this Article shall apply only to the last-mentioned amount. In that case, the excess part

the payments shall remain taxable according to the law

each Contracting State, due regard being had to the other provisions

this Convention. ARTICLE 14 Capital gains

(1)Capital gains from the alienation

immovable property may be taxed in the Contracting State in which such property is situated.

(2)Capital gains from the alienation

shares deriving their value or the greater part

their value directly or indirectly from immovable property, other than shares quoted on a stock exchange, may be taxed in the Contracting State in which such immovable property is situated.

(3)Capital gains from the alienation

movable property forming part

the business property

a permanent establishment which an enterprise

a Contracting State has in the other Contracting State or

movable property pertaining to a fixed base available to a resident

a Contracting State in the other Contracting State for the purpose

performing professional services, including such gains from the alienation

such a permanent establishment (alone or together with the whole enterprise) or

such a fixed base, may be taxed in the other State. Provided that if such movable property consists

shares the gains from which under paragraph

(2)

this Article may be taxed in the Contracting State

which the alienator is a resident, because the relevant immovable property is situated in that State, the said gains shall be taxable only in that State.

(4)Except as provided in paragraph
(2)

this Article and notwithstanding the provisions

paragraph

(3)

this Article, capital gains derived by a resident

a Contracting State from the alienation

ships and aircraft operated in international traffic and movable property pertaining to the operation

such ships and aircraft shall be taxable only in that Contracting State.

(5)Capital gains from the alienation

any property other than those mentioned in paragraphs

(1),
(2),
(3)and
(4)

this Article shall be taxable only in the Contracting State

which the alienator is a resident. Provided that where under the law

that Contracting State an individual, in respect

such gains, is subject to tax thereon by reference only to the amount thereof which is received in that Contracting State, the foregoing provisions

this paragraph shall not operate in relation to so much

such gains as is not received in that Contracting State.

(6)For the purposes

this Article the term "immovable property" means immovable property as defined in paragraph

(2)

Article 7. ARTICLE 15 Employments

(1)Subject to the provisions

Articles 17 and 18, salaries, wages and other similar remuneration derived by a resident

a Contracting State in respect

an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

(2)Notwithstanding the provisions

paragraph

(1)

this Article, remuneration derived by a resident

a Contracting State in respect

an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: ( a ) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and ( b ) the remuneration is paid by, or on behalf

, an employer who is not a resident

the other State; and ( c ) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

(3)In relation to remuneration

a director

a company derived from the company the preceding provisions

this Article shall apply as if the remuneration were remuneration

an employee in respect

an employment and as if references to "employer" were references to the company. ARTICLE 16 Artistes and athletes

(1)Nothwithstanding the provisions

Article 15

, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which those activities are exercised.

(2)Where income in respect

personal activities as such

an entertainer or athlete accrues not to that entertainer or athlete himself but to another person that income may, notwithstanding the provisions

Articles 8 and 15, be taxed in the Contracting State in which the activities

the entertainer or athlete are exercised. ARTICLE 17 Pensions

(1)Subject to the provisions

paragraphs

(1)and
(2)

Article 18

, pensions and other similar remuneration paid in consideration

past employment to a resident

a Contracting State and any annuity paid to such a resident shall be taxable only in that State.

(2)The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period

time under an obligation to make the payments in return for adequate and full consideration in money or money's worth. ARTICLE 18 Governmental functions

(1)Remuneration or pensions paid by, or out

funds created by, Ireland or a local authority thereof to any individual in respect

services rendered to the Government

Ireland or a local authority thereof, in the discharge

functions

a governmental nature, shall be taxable only in Ireland unless the individual is a United Kingdom national without also being a national

Ireland.

(2)Remuneration or pensions paid out

public funds

the United Kingdom or Northern Ireland or

the funds

any local authority in the United Kingdom to any individual in respect

services rendered to the Government

the United Kingdom or Northern Ireland or a local authority in the United Kingdom in the discharge

functions

a governmental nature, shall be taxable only in the United Kingdom unless the individual is a national

Ireland without also being a United Kingdom national.

(3)The provisions

paragraphs

(1)and
(2)

this Article shall not apply to remuneration or pensions in respect

services rendered in connection with any trade or business. ARTICLE 19 Students Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident

the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose

his education or training receives for the purpose

his maintenance, education or training shall not be taxed in the first-mentioned State, provided that such payments are made to him from sources outside that State. ARTICLE 20 Income not expressly mentioned Items

income

a resident

a Contracting State, wherever arising, being income

a class or from sources not expressly mentioned in the foregoing Articles

this Convention, other than income paid out

trusts, shall be taxable only in that State. ARTICLE 21 Elimination

double taxation

(1)Subject to the provisions

the law

Ireland regarding the allowance as a credit against Irish tax

tax payable in a territory outside Ireland (which shall not affect the general principle hereof)— ( a ) United Kingdom tax payable under the laws

the United Kingdom and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the United Kingdom (excluding in the case

a dividend tax payable in respect

the profits out

which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or chargeable gains by reference to which the United Kingdom tax is computed. ( b ) In the case

a dividend paid by a company which is a resident

the United Kingdom to a company which is a resident

Ireland and which controls directly or indirectly 10 per cent or more

the voting power in the company paying the dividend, the credit shall take into account (in addition to any United Kingdom tax creditable under the provisions

sub-paragraph (a)

this paragraph) the United Kingdom tax payable by the company in respect

the profits out

which such dividend is paid.

(2)Subject to the provisions

the law

the United Kingdom regarding the allowance as a credit against United Kingdom tax

tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof)— ( a ) Irish tax payable under the laws

Ireland and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Ireland (excluding in the case

a dividend tax payable in respect

the profits out

which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Irish tax is computed. ( b ) In the case

a dividend paid by a company which is a resident

Ireland to a company which is a resident

the United Kingdom and which controls directly or indirectly 10 per cent or more

the voting power in the company paying the dividend, the credit shall take into account (in addition to any Irish tax creditable under the provisions

sub-paragraph (a)

this paragraph) the Irish tax payable by the company in respect

the profits out

which such dividend is paid.

(3)For the purposes

paragraphs

(1)and
(2)

this Article profits, income and capital gains owned by a resident

a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State.

(4)Where profits on which an enterprise

a Contracting State has been charged to tax in that State are also included in the profits

an enterprise

the other State and the profits so included are profits which would have accrued to that enterprise

the other State if the conditions made between the enterprises had been those which would have been made between independent enterprises dealing at arm's length, the amount included in the profits

both enterprises shall be treated for the purposes

this Article as income from a source in the other State

the enterprise

the first-mentioned State and relief shall be given accordingly under the provisions

paragraph

(1)or paragraph
(2)

this Article. ARTICLE 22 Personal allowances

(1)Individuals who are residents

the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes

Irish tax as citizens

Ireland not resident in Ireland.

(2)Individuals who are residents

Ireland shall be entitled to the same personal allowances, reliefs and reductions for the purposes

United Kingdom tax as British subjects not resident in the United Kingdom. ARTICLE 23 Non-discrimination

(1)The nationals

a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals

that other State in the same circumstances are or may be subjected.

(2)The taxation on a permanent establishment which an enterprise

a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises

that other State carrying on the same activities.

(3)Enterprises

a Contracting State, the capital

which is wholly or partly owned or controlled, directly or indirectly, by one or more residents

the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises

that first-mentioned State are or may be subjected.

(4)Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any

the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident.

(5)Nothing contained in this Article shall be construed as obliging a Contracting State to grant to a company which is a resident

the other Contracting State a greater relief from income tax chargeable on dividends received from a company which is a resident

the first-mentioned Contracting State than the relief to which the first-mentioned company may be entitled under the provisions

Article 11

this Convention.

(6)In this Article the term "taxation" means taxes

every kind and description. ARTICLE 24 Mutual agreement procedure

(1)Where a resident

a Contracting State considers that the actions

one or both

the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws

those States, present his case to the competent authority

the Contracting State

which he is a resident.

(2)The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority

the other Contracting State, with a view to the avoidance

taxation not in accordance with the Convention.

(3)The competent authorities

the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application

the Convention.

(4)The competent authorities

the Contracting States may communicate with each other directly for the purpose

reaching an agreement in the sense

the preceding paragraphs. ARTICLE 25 Exchange

information

(1)The competent authorities

the Contracting States shall exchange such information as is necessary for the carrying out

this Convention and

the domestic laws

the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than persons (including a Court or administrative body) concerned with the assessment or collection

, or prosecution in respect

, or the determination

appeals in relation to, the taxes which are the subject

the Convention.

(2)In no case shall the provisions

paragraph

(1)be construed so as to impose on the competent authority

either Contracting State the obligation: ( a ) to carry out administrative measures at variance with the laws or administrative practice prevailing in either Contracting State; ( b ) to supply particulars which are not obtainable under the laws or in the normal course

the administration

that or

the other Contracting State; ( c ) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure

which would be contrary to public policy. ARTICLE 26 Diplomatic and consular

ficials Nothing in this Convention shall affect the fiscal privileges

diplomatic or consular

ficials under the general rules

international law or under the provisions

special agreements. ARTICLE 27 Territorial extension

(1)This Convention may be extended, either in its entirety or with modifications, to any territory for whose international relations either Contracting State is responsible and which imposes taxes substantially similar in character to those to which this Convention applies. Any such extension shall take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed between the Contracting States in Notes to be exchanged through diplomatic channels.
(2)Unless otherwise agreed by both Contracting States, the termination

this Convention shall terminate the application

this Convention to any territory to which it has been extended under the provisions

this Article. ARTICLE 28 Entry into force

(1)This Convention shall enter into force on the exchange

Notes confirming that the necessary steps have been taken to give it the force

law in Ireland and the United Kingdom, and shall thereupon have effect: ( a ) in Ireland: (i) as respects income tax other than income tax on salaries, wages, remuneration and pensions to which Articles 15 and 18 apply, for any year

assessment beginning on or after 6 April 1976; (ii) as respects income tax on salaries, wages, remuneration and pensions to which Articles 15 and 18 apply, for any year

assessment beginning on or after 6 April 1977; (iii) as respects corporation tax, for the financial year 1974 and subsequent financial years; (iv) as respects capital gains tax, for any year

assessment beginning on or after 6 April 1976. Provided that a person shall not be chargeable to capital gains tax in Ireland for a year

assessment commencing on or after 6 April 1974 and ending on or before 5 April 1976 for which he would have been regarded as a resident

the United Kingdom under the provisions

Article 4

this Convention, if this Convention had applied for that year. ( b ) in the United Kingdom: (i) as respects income tax other than income tax on salaries, wages, remuneration and pensions to which Articles 15 and 18 apply, for any year

assessment beginning on or after 6 April 1976; (ii) as respects income tax on salaries, wages, remuneration and pensions to which Articles 15 and 18 apply, for any year

assessment beginning on or after 6 April 1977; (iii) as respects corporation tax, for any financial year beginning on or after 1 April 1976; (

  1. iv)as respects petroleum revenue tax, for any chargeable period beginning on or after 1 January 1976; (
  2. v)as respects capital gains tax, for any year

assessment beginning on or after 6 April 1976. Provided that a person shall not be chargeable to capital gains tax in the United Kingdom for a year

assessment commencing on or after 6 April 1974 and ending on or before 5 April 1976 for which he would have been regarded as a resident

Ireland under the provisions

Article 4

this Convention, if this Convention had applied for that year.

(2)Except as provided in paragraph
(3)

this Article, the existing Agreements shall terminate upon the entry into force

this Convention as provided in paragraph

(1)

this Article and thereupon cease to be effective as respects taxes to which, in accordance with paragraph

(1), the present Convention applies.
(3)The existing income tax Agreement shall continue to have effect for any year

assessment ending on or before 5 April 1977 as respects income tax on salaries, wages, remuneration and pensions to which Articles 15 and 18

this Convention apply. Provided that for the purposes

sub-paragraphs (c) and (d)

paragraph

(1)

Article 2

the said Agreement any relief granted under the provisions

Articles 11 and 21

this Convention shall be deemed to be relief granted under the provisions

Section 27

the Finance Act, 1920, as amended by the said Article 2.

(4)( a ) In this Article the term "the existing income tax Agreement" means the Agreement made on the 14th April, 1926, between the British Government and the Government

the Irish Free State in respect

Double Income Tax; as amended by: (i) the Agreement made on the 25th day

April, 1928, between the British Government and the Government

the Irish Free State amending the Agreement made on the 14th day

April, 1926, between the said Governments in respect

Double Income Tax; (ii) the Agreement between the Irish Government and the United Kingdom Government amending the Agreement

1926 (as amended by the Agreement

1928) in respect

Double Income Tax dated 21st July, 1947; (iii) the Agreement between the Government

Ireland and the Government

the United Kingdom with respect to certain exemptions from tax dated 4th April, 1959; (iv) the Agreement between the Government

Ireland and the Government

the United Kingdom with respect to certain exemptions from tax dated 23rd June, 1960; (v) the Agreement between the Government

Ireland and the Government

the United Kingdom with respect to certain exemptions from tax dated 2nd May, 1973; and (vi) the Agreement between the Government

Ireland and the Government

the United Kingdom with respect to certain exemptions from tax dated 3rd June, 1975. ( b ) In this Article, the term "the existing Agreements" means: (i) the existing income tax Agreement: and (ii) the Agreement between the Government

the Republic

Ireland and the United Kingdom Government for the Reciprocal Relief

Double Taxation in respect

Irish Corporation Profits Tax and United Kingdom Profits Tax signed on 18th May, 1949 as amended by the Protocol between the Government

Ireland and the Government

the United Kingdom amending the said Agreement, signed on 2nd May, 1973. ARTICLE 29 Termination This Convention shall remain in force until denounced by one

the Contracting States. Either Contracting State may denounce the Convention, through diplomatic channels, by giving notice

termination at least six months before the end

any calendar year after the year 1978. In such event, the Convention shall cease to have effect: ( a ) in Ireland: (i) as respects income tax and capital gains tax, for any year

assessment beginning on or after 6 April in the calendar year next following that in which the notice is given; (

  1. ii)as respects corporation tax, for any financial year beginning on or after 1 January in the calendar year next following that in which the notice is given; ( b ) in the United Kingdom: (
  2. i)as respects income tax and capital gains tax, for any year

assessment beginning on or after 6 April in the calendar year next following that in which the notice is given; (ii) as respects corporation tax, for any financial year beginning on or after 1 April in the calendar year next following that in which the notice is given; (iii) as respects petroleum revenue tax, for any chargeable period beginning on or after 1 January in the calendar year next following that in which the notice is given. In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Convention. Done in two originals at Dublin this 2nd day

June 1976. For the Government

Ireland: For the Government

the United Kingdom: GARRET FITZGERALD ARTHUR GALSWORTHY PROTOCOL BETWEEN THE GOVERNMENT

IRELAND AND THE GOVERNMENT

THE UNITED KINGDOM AMENDING THE CONVENTION FOR THE AVOIDANCE

DOUBLE TAXATION AND THE PREVENTION

FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS, SIGNED ON 2 JUNE 1976. The Government

Ireland and the Government

the United Kingdom; Desiring to conclude a Protocol to amend the Convention between the Contracting Parties for the avoidance

double taxation and the prevention

fiscal evasion with respect to taxes on income and capital gains, signed on 2 June 1976 (hereinafter referred to as "the Convention"); Have agreed as follows:— Article I The following sub-paragraph shall be substituted for sub-paragraph (a)

paragraph

(3)

Article 11

the Convention: "

(3)( a ) The provisions

paragraph

(1)

this Article and the provisions

sub-paragraphs (

  1. a)(
  2. ii)and (
  3. a)(iii)

paragraph

(2)

this Article shall not apply to dividends derived from a company which is a resident

a Contracting State by a resident

the other Contracting State if the competent authority

that other Contracting State certifies that such dividends are not subject to tax in that other Contracting State by reason

provisions in the laws

that other Contracting State which afford relief from taxation to charities and superannuation schemes, as such, or to insurance companies in respect

their pension business, being provisions which were in force at the date

signature

this Convention or which. if they have been modified since that date, have been modified only in minor respects so as not to affect their general character. Such dividends shall be exempt from any tax in the first-mentioned Contracting State which is chargeable on dividends." Article II The following new Article shall be inserted immediately after Article 14

the Convention: "ARTICLE 14a Charities and superannuation schemes: additional provisions

(1)Notwithstanding the provisions

Articles 7 and 14 income derived by a resident

one Contracting State from immovable property situated in the other Contracting State, and capital gains derived by such a resident from the alienation

such property or

related movable property, shall be exempt in that other Contracting State from taxes which are the subject

this Convention by virtue

paragraph

(1)

Article 2

if the competent authority

the first-mentioned Contracting State certifies that the said income or capital gains are not subject to such taxes in that State by reason

provisions in the laws

that State which afford relief from taxation to charities and superannuation schemes, as such, or to insurance companies in respect

their pension business, being provisions which were in force at the date

signature

this Convention or which, if they have been modified since that date, have been modified only in minor respects so as not to affect their general character.

(2)For the purposes

this Article: ( a ) the term "related movable property" means movable property the gains from the alienation

which may, under the provisions

paragraphs

(2)and
(3)

Article 14

, be taxed in the Contracting State in which specified immovable property is situated; ( b ) the term "superannuation scheme" means a superannuation scheme as defined in sub-paragraph (b)

paragraph

(3)

Article 11; ( c ) the term "immovable property" means immovable property as defined in paragraph

(2)

Article 7

." Article III This Protocol, which shall form an integral part

the Convention, shall enter into force on the exchange

Notes confirming that the necessary steps have been taken to give it the force

law in Ireland and the United Kingdom, and shall thereupon have effect in accordance with Article 28

the Convention. In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol. Done in two originals at Dublin this 28th day

October 1976. For the Government

Ireland: For the Government

the United Kingdom: GARRET FITZGERALD J. K. HICKMAN GIVEN under the

ficial Seal

the Government this 22nd day

December, 1976. LIAM MAC COSGAIR, Taoiseach. EXPLANATORY NOTE. This Order gives the force

law to the Convention with the United Kingdom and the Protocol amending the Convention both

which are set out in the Schedule. The Convention and Protocol replace Agreements made in 1926 and 1949, and amending Agreements. The effect

the Convention and Protocol is summarised below. There are provisions under which certain business profits not arising through a permanent establishment, shipping and air transport profits, interest, royalties, pensions (other than Government pensions) and earnings

temporary business visitors are, subject to certain conditions, to be taxed only in the country

residence

the taxpayer. Government salaries and pensions are normally to be taxed by the paying Government only. Where income continues to be taxable in both countries, relief from double taxation is to be given by the country

residence

the taxpayer for the tax payable in the country

origin

the income. It is provided that where a company which is a resident

one

the countries pays a dividend to a resident

the other country ( other than a company which controls 10 per cent or more

the voting power in the paying company) the recipient is, subject to certain conditions, to receive the tax credit to which an individual resident in the country

which the paying company is a resident would be entitled had he received that dividend. Income tax at a rate not exceeding 15 per cent on the aggregate

the dividend and the tax credit may be charged in the country

source

the dividend unless the dividend is exempt from tax in the other country by reason

tax reliefs accorded by that other country to charities, superannuation schemes and insurance companies in respect

their pension business. Where the dividend is so exempt the source country may not impose any income tax on the aggregate

the dividend and the tax credit. Capital gains arising from the disposal

immovable property and

shares linked with immovable property may be taxed by the country in which the property is situated. Capital gains arising from the disposal

other property are normally to be taxed only in the country

residence

the taxpayer unless they arise from the disposal

assets

a permanent establishment or fixed base which the taxpayer has in the other country. There are provisions giving charities, superannuation schemes and the pension business

insurance companies reciprocal exemptions from the taxes listed in Article 2

(1)

the Convention on income from immovable property and on capital gains arising from the disposal

immovable property or related movable property. Each country is to treat residents

the other country, in the matter

personal allowances and reliefs for tax purposes, in the same way as it treats its own non-resident citizens or subjects. Provision is made for safeguarding nationals and enterprises

one country against discriminatory taxation in the other country, for consultation between the taxing authorities

the two countries for the purpose

resolving any difficulties or doubts arising as to the interpretation or application

the Convention and for the exchange

such information between those authorities as is necessary for the carrying out

the Convention. The Convention is, in general, to have effect in the State as respects income tax and capital gains tax for the year

assessment 1976-77 and subsequent years and as respects corporation tax for the financial year 1974 [as defined in section 1

(5)

the Corporation Tax Act, 1976 (No. 7

1976)] and subsequent financial years. There are transitional provisions relating to income tax on remuneration from employments and Government pensions and to capital gains tax. Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government

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