A fixed sheep handling unit to hold sheep for treatment, built in accordance with Department of Agriculture, Food and the Marine structures specifications S100, S129, S136 and S136A as published on a website maintained by or on behalf of the Minister for Agriculture, Food and the Marine or the Government.
\n
The fixed unit must consist of at least two pens and a race with gates at each end. It may also include a fixed footbath, a fixed rollover crate, a fixed weighing scales and a dipping tank.
\n
Fixed cattle crush or cattle crush race.
\n
A fixed cattle crush or cattle crush race including skulling gate and backing gate to hold animals for treatment, constructed on new or existing concrete and built in accordance with Department of Agriculture, Food and the Marine structures specifications S100, S129 and S137 as published on a website maintained by or on behalf of the Minister for Agriculture, Food and the Marine or the Government.
\n
The race may be double sided or, if constructed alongside an existing wall, single sided.
\n
Calving gate.
\n
A calving gate, used to restrain a cow during calving or afterwards to enable safe treatment of the cow or calf, or both, constructed and fitted in accordance with Department of Agriculture, Food and the Marine structures specification S138 as published on a website maintained by or on behalf of the Minister for Agriculture, Food and the Marine or the Government.
\n
Flood lights for farmyards.
\n
Flood lights in a farmyard to provide a safe working environment during low light or darkness, installed and certified to be in compliance with the National Rules for Electrical Installations (I.S. 10101) as published by the National Standards Authority of Ireland. The flood lights shall be either metal-halide or LED with a lux output equal to or greater than a 200W halogen light.
\n
Livestock monitors.
\n
A fixed livestock monitoring camera which remotely connects to a smart phone or a computer to enable remote monitoring of livestock giving birth and fitted in accordance with Department of Agriculture, Food and the Marine structures specification S147 as published on a website maintained by or on behalf of the Minister for Agriculture, Food and the Marine or the Government.
\n
Sliding door or roller door for agricultural buildings.
\n
A new sliding door or roller door on an agricultural building to provide safe access, constructed and fitted in accordance with Department of Agriculture, Food and the Marine structures specifications S101 and S102 as published on a website maintained by or on behalf of the Minister for Agriculture, Food and the Marine or the Government. ”.
\n
Amendment of section 766C of Principal Act (research and development corporation tax credit) 41. (1) Section 766C(6)(a)(i) of the Principal Act is amended by the substitution of “€75,000” for “€50,000”.
\n
(2)Subsection (1) shall apply in respect of accounting periods commencing on or after 1 January 2025.
\n
Deduction for stock exchange listing expenditure 42. (1) The Principal Act is amended by the insertion of the following section after section 81C: “81D. (1) In this section— ‘Directive’ means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 20143 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU; ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state which is a contracting party to the EEA Agreement; ‘investment company’ has the meaning assigned to it by section 83(1); ‘listing expenditure’ means expenditure incurred by a company wholly and exclusively for the purpose of admitting to trading the shares of the company on a regulated market or a multilateral trading facility; ‘multilateral trading facility’ has the same meaning as it has in Article 4(1), point (22), of the Directive; ‘reference date’ means— (a) the date on which a company commenced the carrying on of a trade or profession, or (b) where a company is an investment company, the date on which the company became an investment company; ‘regulated market’ has the same meaning as it has in Article 4(1), point (21), of the Directive; ‘relevant period’, in relation to an accounting period of a company, means the period— (a) beginning on the later of— (i) the date which is 3 years before the date on which the accounting period begins, or (ii) the reference date, and (b) ending on the date on which the accounting period ends.
\n
(2)Where— (a) the shares of a company are admitted to trading on a regulated market or a multilateral trading facility, as the case may be, in an EEA state during an accounting period, (b) the company incurs listing expenditure in relation to the admission to trading referred to in paragraph (a) in the relevant period, and (c) no allowance, deduction or relief is available under any provision of the Tax Acts, apart from this section, in respect of the listing expenditure referred to in paragraph (b) in any accounting period, then, for the accounting period during which the shares of the company are admitted to trading as referred to in paragraph (a), such listing expenditure shall be allowed— (i) to be deducted in computing the amount of the profits or gains to be charged to tax under Case I or II of Schedule D, or (ii) where the company is an investment company, to be added to the expenses of management of the investment company for the purposes of subsections (2) and (3) of section 83.
\n
(3)The total amount of listing expenditure allowed to be deducted, or added to expenses of management, as the case may be, under subsection (2) shall not exceed €1,000,000.
\n
(4)This section shall not apply to a company where the shares of the company were previously admitted to trading on a regulated market or a multilateral trading facility in an EEA state, or listed on any stock exchange, in any accounting period.
\n
(5)This section shall apply to a company whose shares are admitted to trading on a regulated market or a multilateral trading facility in an EEA state on or before 31 December 2029.”.
\n
(2)(a) Subsection (1) shall apply to companies whose shares are admitted to trading on a regulated market or a multilateral trading facility in an EEA state on or after 1 January 2025. (b) In this subsection, “regulated market”, “multilateral trading facility” and “EEA state”, have the meaning given to them, respectively, by section 81D (inserted by subsection (1)) of the Principal Act.
\n
Amendment of certain tax exemption provisions of Principal Act 43. (1) The Principal Act is amended— (a) in Schedule 4— (i) by the insertion of the following paragraph after paragraph 45A: “45B. The Health Insurance Authority.”, (ii) by the insertion of the following paragraph after paragraph 47A: “47B. The Health Products Regulatory Authority.”, (iii) by the deletion of paragraph 57, and (iv) by the insertion of the following paragraph after paragraph 91B: “91C. Skillnet Ireland Company Limited by Guarantee.”, and (b) in Part 1 of Schedule 15, by the insertion of the following paragraph after paragraph 50: “51. Inland Fisheries Ireland.”.
\n
(2)Paragraph (b) of subsection (1) shall be deemed to have effect from 1 July 2010.
\n
Taxation of leases 44. The Principal Act is amended— (a) in section 288— (i) in subsection (1A): (I) by the substitution of “Notwithstanding the generality of subsection (1),” for “Notwithstanding subsection (1) and subject to this section,”, (II) in paragraph (a), by the substitution of “notwithstanding the fact that but for section 299(1)” for “notwithstanding the fact that”, and (III) in paragraph (b), by the substitution of “a lease of machinery or plant on the terms described in section 299(1) notwithstanding the fact that but for section 299(1)” for “a relevant lease (within the meaning of section 299) in respect of which a valid election or claim under section 299 was made, notwithstanding the fact that”, (ii) in subsection (3), by the substitution of “Subject to subsection (6B), where the sale, insurance, salvage or compensation moneys” for “Where the sale, insurance, salvage or compensation moneys”, (iii) in subsection (6B), by the substitution of “subsections (2) and (3)” for “subsection (2)” in each place where it occurs, and (iv) by the insertion of the following subsection after subsection (6B): “(6C) Where a lease on the terms referred to in paragraph (a) of subsection (1A) is entered into before the machinery or plant to which that lease refers is made available to the lessee, subsection (1A) shall apply as if the requirement in that subsection for the machinery or plant, but for section 299(1), to belong to the lessor prior to entering into a lease of machinery or plant was a requirement for the machinery or plant, but for section 299(1), to belong to the lessor prior to the date the machinery or plant is made available to the lessee unless it is reasonable to consider that the date the lease was entered into and the date the machinery or plant was made available to the lessee are not the same date— (a) for reasons other than bona fide commercial reasons, and (b) as part of an arrangement under which a tax advantage (within the meaning of section 299(5A)) arises and— (i) the tax advantage is priced into the terms of the arrangement, or (ii) the arrangement was designed to give rise to a tax advantage.”, (b) in section 299— (i) in subsection (5)— (I) by the substitution of “Subject to subsection (5A), subsection (4)” for “Subsection (4)”, (II) by the substitution of the following paragraph for paragraph (c): “(c) the lessor acquired the leased asset by way of— (i) a bargain made at arm’s length, or (ii) a transfer in respect of which a valid election under section 312(5) was made, subject to the person who made the transfer of the asset to the lessor having acquired the asset by way of a bargain made at arm’s length,”,
\n
(III) in paragraph (e), by the substitution of “bargain made at arm’s length, and” for “bargain made at arm’s length”, and (IV) by the deletion of paragraphs (f) and (g), (ii) by the insertion of the following subsections after subsection (5): “(5A) (a) (i) Subject to paragraph (b), where a relevant lease is an associated relevant lease, subsection (4) shall only apply to a lessor in respect of the associated relevant lease where— (I) the requirements set out in paragraphs (a) to (h) of subsection (5) have been satisfied, and (II) subparagraph (ii) does not apply. (ii) Subject to subparagraphs (iii) and (iv), this subparagraph applies where at the date of commencement of the associated relevant lease— (I) the lessee is entitled, in computing the profits or gains on which tax falls finally to be borne for the purposes of foreign tax, to— (A) a relief in respect of the value of the machinery and plant which corresponds to allowances available under Part 9, and (B) any other deduction, allowance or relief in respect of the lease payments, and (II) it is reasonable to consider that the aggregate amount of the deductions referred to in subclause (B) of clause (I), over the associated relevant lease term, materially exceeds an amount which corresponds to the amount by which the aggregate of the lease payments over the lease term exceeds the aggregate of the deductions referred to in subclause (A) of clause (I) over the associated relevant lease term. (iii) Where the machinery or plant that is the subject of an associated relevant lease to which subparagraph (ii) applies is let by the lessee by way of a lease (referred to in this subparagraph as ‘the sub-lease’) to an associated enterprise (in this subparagraph referred to as ‘the sub-lessee’), subparagraph (ii) shall apply as if the references in that subparagraph— (I) to the lessee were references to both the lessee and the sub lessee, and (II) to the relevant lease were references to both the associated relevant lease and the sub-lease. (iv) If the terms of the lease are amended during the lease term, subparagraph (ii) shall apply as if the reference in that subparagraph to the date of commencement of the associated relevant lease included a reference to the effective date of the change of those terms. (b) Subsection (4) shall not apply to a lessor in respect of a relevant lease, where it is reasonable to consider that the relevant lease— (i) has not been entered into for bona fide commercial reasons, and (ii) is part of an arrangement under which a tax advantage arises and—
\n
(I) the tax advantage is priced into the terms of the arrangement, or (II) the arrangement was designed to give rise to a tax advantage. (c) For the purposes of this subsection— ‘associated enterprise’ means an enterprise that would be associated for the purposes of Chapter 4 of Part 35C; ‘associated relevant lease’ means a relevant lease in respect of which the lessee is an associated enterprise of the lessor; ‘foreign tax’ has the meaning assigned to it in section 835Z(1); ‘tax advantage’, in respect of an arrangement, means where in computing the profits or gains on which tax or foreign tax falls finally to be borne, over the lease term, the aggregate of the amounts of relief, deduction or allowance available, directly or indirectly, in respect of the lease payments or the value of the leased machinery or plant to the lessee or any other party to the arrangement, materially exceeds an amount which corresponds to the total lease payments. (5B) Where a relevant lease of machinery or plant is entered into before the machinery or plant to which the relevant lease refers is made available to the lessee, this section shall apply as if the reference in subsection (5)(a) to the period immediately prior to the lessor entering into the relevant lease of machinery or plant was a reference to the date the machinery or plant is made available to the lessee.”, (iii) by the deletion of subsection (6), and (iv) in subsection (8)— (I) by the substitution of “Where this section applies to a lessee,” for “In making a claim under subsection (6)(b)(ii)”, (II) in paragraph (h), by the substitution of “return is made.” for “return is made;”, and (III) by the deletion of paragraph (i), (c) in section 403— (i) in subsection (1)(d)(ii)(IIA), by the substitution of the following subclause for subclause (B): “(B) the moneys provided to the intermediate financing company are moneys which have been borrowed from persons who are not connected with any member of the leasing business group;”, (ii) in subsection (5), by the substitution of the following paragraph for paragraph (a): “(a) Section 305(1)(b) shall not apply in relation to capital allowances.”, and (iii) by the deletion of subsections (5A) to (10), (d) in section 404— (i) in subsection (1)— (I) in paragraph (a), by the insertion of the following definition: “ ‘even lease’ means a lease where, for the purpose of computing a company’s income from the lease— (a) subject to paragraph (b), the total lease payments receivable in respect of that lease are treated as receipts arising evenly over the lease term, and
\n
(b) where an event referred to in paragraph (a) or (b), as the case may be, of section 76D(4) occurs, the lease payments are recalculated in a manner consistent with that provided for in paragraph (a) or (b), as the case may be, of section 76D(4);”, and (II) in paragraph (b)— (A) in subparagraph (iv), by the substitution of “accounting periods,” for “accounting periods, and”, (B) in subparagraph (v), by the substitution of “the lease shall not be treated as a relevant lease, and” for “the lease shall not be treated as a relevant lease.”, and (C) by the insertion of the following subparagraph after subparagraph (v): “(vi) a lease shall not be a relevant lease where it is an even lease.”, (ii) in subsection (2)— (I) in paragraph (a)— (A) by the substitution of “Subject to subsection (2B),” for “Subject to subsection (2A),”, and (B) by the substitution of “subsection (2A)” for “subsections (5) to (9)”, and (II) by the insertion of the following paragraph after paragraph (b): “(c) In determining the amount of specified capital allowances from a relevant lease that are available for relief for the purposes of section 308(1), income from a relevant lease is to be treated as if it were a separate specified class of income.”, (iii) by the deletion of subsection (2A), (iv) by the insertion of the following subsection before subsection (3): “(2B) Where a company has more than one specified leasing trade, such trades shall be aggregated to form a single specified trade of leasing (in this subsection referred to as a ‘balloon leasing trade’) and where in an accounting period that balloon leasing trade incurs a relevant leasing loss (within the meaning of section 403), the relevant amount of that loss shall not be available for relief under— (a) section 396A(3), except to the extent that the amount can be used to reduce the income of the balloon leasing trade of the company, or (b) section 396B, 420A or 420B, as the case may be.”, and (v) by the insertion of the following subsection after subsection (6): “(7) A company, the capital allowances of which are subject to the restrictions in this section, shall provide the following information where it is required by the return required under Part 41A: (a) details of the affected capital allowances claimed in the period to which the return relates including— (i) the amounts claimed, both in the course of a trade and otherwise than in the course of a trade, and (ii) where an event referred to in section 288 occurs, in relation to an asset on which affected capital allowances are made, in that period, details relating to that event including the amount of any balancing allowance or charge made on the asset;
\n
(b) the amount of any relevant leasing loss, within the meaning of section 403(4), arising from a relevant lease available for set off at the commencement of the period to which the return relates; (c) details of any claims of relevant leasing losses, within the meaning of section 403(4), made for set off in the period to which the return relates under section 396(1) or 396A; (d) details of those leases which are relevant leases by virtue of subsection (5) only; (e) where, in the period to which the return relates, a company disposes of machinery or plant in respect of which specified capital allowances were claimed, details— (i) in respect of any chargeable gain or capital loss arising, or (ii) in relation to the appropriation of that asset into trading stock under section 596.”, (e) in section 485C, by the deletion of subsection (1B), and (f) in Schedule 25B, by the deletion of the entries at Reference Numbers 15C and 15D and the matters set opposite those reference numbers.
\n
Amendment of Part 35A of Principal Act (transfer pricing) 45. (1) Part 35A of the Principal Act is amended by the insertion of the following section after section 835D: “OECD Pillar One - Amount B 835DA. (1) (a) In this section— ‘covered jurisdiction’ means a jurisdiction listed in the document entitled Statement on the definition of covered jurisdiction for the Inclusive Framework political commitment on Amount B, published by the OECD on 17 June 2024; ‘OECD’ has the same meaning as in section 835D(1); ‘OECD Pillar One Amount B guidance’ means the document entitled OECD (2024), Pillar One - Amount B: Inclusive Framework on BEPS, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, published by the OECD on 19 February 2024, supplemented by the document entitled Statement on the definitions of qualifying jurisdiction within the meaning of section 5.2 and section 5.3 of the simplified and streamlined approach, published by the OECD on 17 June 2024; ‘one-sided transfer pricing method’ and ‘tested party’ shall be construed in accordance with the transfer pricing guidelines (within the meaning of section 835D); ‘qualifying arrangement’ shall be construed in accordance with subsection (2). (b) A word or expression which is used in this section and is also used in the OECD Pillar One Amount B guidance has, unless the context otherwise requires, the same meaning in this section as it has in the OECD Pillar One Amount B guidance.
\n
(2)(a) For the purposes of this section, subject to paragraph (b), a qualifying arrangement is an arrangement that— (i) is— (I) a buy-sell marketing and distribution arrangement where the distributor under the arrangement purchases goods from one or more than one associated company for wholesale distribution to independent parties, or (II) a sales agency or commissionaire arrangement where the sales agent or commissionaire under the arrangement contributes to one or more than one associated company’s wholesale distribution of goods to independent parties and where those goods are sold by the associated company without either it, or the sales agent or commissionaire, engaging other associated parties as intermediaries between it and the independent party customers, and (ii) exhibits the economically relevant characteristics that mean it can be reliably priced using a one-sided transfer pricing method where the distributor, sales agent or commissionaire, as the case may be, is the tested party. (b) Notwithstanding paragraph (a), an arrangement shall not be a qualifying arrangement where— (i) the arrangement involves the distribution of non-tangible goods, services or the marketing, trading or distribution of commodities, (ii) the distributor, sales agent or commissionaire, as the case may be, that is the tested party, carries out non-distribution activities and the arrangement cannot be adequately evaluated and reliably priced separately from those non-distribution activities, or (iii) the distributor, sales agent or commissionaire, as the case may be, that is the tested party has incurred annual operating expenses which are— (I) lower than 3 per cent, or (II) greater than 30 per cent, of its annual net revenues.
\n
(3)Subject to subsections (4) and (6), this section shall apply to a qualifying arrangement for a chargeable period where, for that chargeable period— (a) (i) the supplier in relation to the qualifying arrangement is a company resident in the State and the acquirer is— (I) the distributor, sales agent or commissionaire, as the case may be, under the qualifying arrangement, and (II) a company which, by virtue of the law of a covered jurisdiction, is resident, for the purposes of a tax which corresponds to corporation tax, in a covered jurisdiction, or (ii) the acquirer in relation to the qualifying arrangement is a company resident in the State and the supplier is— (I) the distributor, sales agent or commissionaire, as the case may be, under the qualifying arrangement, and (II) a company which, by virtue of the law of a covered jurisdiction, is resident, for the purposes of a tax which corresponds to corporation tax, in a covered jurisdiction, (b) under the tax law of the covered jurisdiction, the arm’s length amount of consideration for the supply and acquisition under the qualifying arrangement may be determined in accordance with the OECD Pillar One Amount B guidance, (c) the profits of the distributor, sales agent or commissionaire, as the case may be, relating to that qualifying arrangement are charged to tax in that covered jurisdiction and such profits are determined in accordance with the OECD Pillar One Amount B guidance, and (d) the covered jurisdiction is a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made.
\n
(4)For the purposes of subsection (3), the arm’s length amount of consideration for a supply and acquisition under a qualifying arrangement refers to the amount of consideration that independent parties dealing at arm’s length would have agreed in relation to the supply and acquisition.
\n
(5)Where this section applies to a qualifying arrangement for a chargeable period, this Part shall apply— (a) to the qualifying arrangement for the chargeable period as if— (i) in section 835C, the following subsection were substituted for subsection (4): ‘(4) (a) The arm’s length amount of consideration for a supply and acquisition under an arrangement shall be determined by— (i) identifying the actual commercial or financial relations between the supplier and the acquirer and the conditions and economically relevant circumstances attaching to those relations (in this paragraph referred to as the ‘identified arrangement’), and (ii) subject to paragraph (b), applying the transfer pricing method set out in the transfer pricing guidelines (within the meaning of section 835D) that is, in the circumstances, the most appropriate so as to determine the arm’s length amount of consideration for the identified arrangement. (b) For the purposes of paragraph (a)(ii), the transfer pricing method that is the most appropriate to determine the arm’s length amount of consideration for a qualifying arrangement (within the meaning of section 835DA) shall be determined in accordance with the OECD Pillar One Amount B guidance (within the meaning of section 835DA).’, and (ii) in section 835D, the following definition were substituted for the definition of “transfer pricing guidelines”: ‘ “transfer pricing guidelines” means the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations published by the OECD on 20 January 2022 supplemented by— (a) such additional guidance, published by the OECD on or after the date of passing of the Finance Act 2022 , as may be designated by the Minister for Finance for the purposes of this Part by order made under subsection (3), and (b) the OECD Pillar One Amount B guidance (within the meaning of section 835DA);’, and (b) as if in section 835G— (i) in subsection (1), the following definition were substituted for the definition of “local file”: ‘ “local file” means a report containing— (a) the information specified in Annex II to Chapter V of the transfer pricing guidelines, and (b) where the relevant person is a party to a qualifying arrangement to which section 835DA applies— (i) the information specified in paragraph 60 of the OECD Pillar One Amount B guidance (within the meaning of section 835DA), (ii) the financial statements of the distributor, sales agent or commissionaire, as the case may be, for each period of account, which corresponds to the chargeable period of the relevant person,
\n
(iii) confirmation, in respect of each arrangement to which that section applies, and for each period referred to in subparagraph (ii), that the conditions referred to in paragraphs (b) and (c) of section 835DA(3) are satisfied, (iv) confirmation that it is intended that the condition referred to in paragraph (c) of section 835DA(3) will be satisfied in respect of a qualifying arrangement for a minimum period of 3 years commencing from the first day of the first chargeable period to which section 835DA applies to the qualifying arrangement, unless— (I) the arrangement is no longer a qualifying arrangement during that period of 3 years, or (II) there is a significant change in the distributor’s business, and (v) where clause (I) or (II), as the case may be, of subparagraph (iv) applies, details of the circumstances in which the clause concerned so applies;’, (ii) the following subsection were inserted after subsection (1): ‘(1A) A word or expression which is used in the definition in subsection (1) of “local file” and is also used in the OECD Pillar One Amount B guidance (within the meaning of section 835DA) has, unless the context otherwise requires, the same meaning in that definition as it has in the OECD Pillar One Amount B guidance (within the said meaning).’, and (iii) the following subsection were inserted after subsection (3): ‘(3A) Where the relevant person is a party to a qualifying arrangement to which section 835DA applies for a chargeable period, the relevant person shall submit a notification to the Revenue Commissioners that the section applies, in such manner and form as may be prescribed by the Revenue Commissioners, no later than the date on which a return for the chargeable period is required to be delivered.’.
\n
(6)This section shall only apply where a qualifying arrangement is entered into— (a) for bona fide commercial reasons, and (b) not as part of an arrangement the main purpose, or one of the main purposes, of which is the avoidance of tax.”.
\n
(2)Section 835C(3) is amended by the substitution of “subsections (4) and (5), subject to section 835DA, shall apply” for “subsections (4) and (5) shall apply”.
\n
(3)Subsections (1) and (2) shall apply for chargeable periods (within the meaning of section 321(2) of the Principal Act) commencing on or after 1 January 2025.
\n
Amendment of section 817U of Principal Act (outbound payments defensive measures) 46. (1) Section 817U of the Principal Act is amended— (a) in subsection (1)— (i) by the deletion of the definition of “foreign company charge”, and (ii) by the substitution of the following definition for the definition of “supplemental tax”: “ ‘supplemental tax’ means— (a) a qualified IIR, (b) a qualified UTPR, (c) a qualified domestic top-up tax, or (d) any other tax which is similar to any of the taxes referred to in paragraphs (a) to (c);”, and (b) in subsection (6), by the deletion of “, that is resident or situated in a different territory,”.
\n
(2)Subsection (1) shall have effect as respects a relevant payment, or a relevant distribution, both within the meaning of section 817U of the Principal Act, made on or after 1 January 2025.
\n
Chapter 5
\n
Corporation Tax Amendment of section 835AY of Principal Act (interest limitation) 47. (1) Part 35D of the Principal Act is amended in section 835AY— (a) in subsection (1)— (i) by the substitution of the following definition for the definition of “finance cost element of non-finance lease payments”: “ ‘finance cost element of non-finance lease payments’, in respect of a company and an accounting period, means— (a) subject to paragraph (b), the portion of the deductible lease payment in that accounting period calculated as follows:
\n
P × (A – B) /A where— P is the deductible lease payment, A is the total expected cost of the lease, over the course of the life of the lease on the date the lease was entered into, and B is the value of the right of use asset recognised in the accounts under international accounting standards, or would be so recognised if accounts were prepared in accordance with international accounting standards, on the date the lease was entered into, but where the terms of the lease are amended during the life of the lease such that either of A or B are amended, then, for the accounting period in which that amendment was made and all successive accounting periods, A and B shall be calculated as if a new lease was entered into at the date of amendment, or (b) where section 299 applies in respect of a relevant lease (within the meaning of section 299(1A)), the amount calculated in accordance with section 299(3)(c)(i) in respect of the relevant lease;”, (ii) by the substitution of the following definition for the definition of “finance element of finance lease payments”: “ ‘finance element of finance lease payments’, in respect of a company and an accounting period, means— (a) subject to paragraphs (b) and (c), the portion of the deductible, or taxable, finance lease payment, as the case may be, in that accounting period calculated as follows:
\n
P × (A/B) where— P is the deductible, or taxable, finance lease payment, as the case may be, A is the expected total finance cost, or finance income, as the case may be, which will be recognised in the accounts under generally accepted accounting practice over the course of the life of the lease on the date the lease was entered into, and B is the total expected cost of the lease, or income of the lease, as the case may be, over the course of the life of the lease on the date the lease was entered into, but where the terms of the lease are amended during the life of the lease such that either of A or B are amended, then, for the accounting period in which that amendment was made and all successive accounting periods, A and B shall be calculated as if a new lease was entered into at the date of amendment, (b) where a claim is made under section 80A(2), in respect of a relevant short-term lease (within the meaning of section 80A), the amount calculated in accordance with section 80A(2)(a) in respect of the relevant short-term lease, or (c) where section 299 applies in respect of a relevant lease (within the meaning of section 299(1A))— (i) in respect of a lessee, the amount calculated in accordance with section 299(3)(c)(i) in respect of the relevant lease, or (ii) in respect of a lessor, the amount calculated in accordance with section 299(4)(a) in respect of the relevant lease;”, and (iii) by the substitution of the following definition for the definition of “finance income element of non-finance lease payments”: “ ‘finance income element of non-finance lease payments’, in respect of a company and an accounting period, means— (a) subject to paragraph (b), the portion of the taxable lease payment in that accounting period calculated as follows:
\n
P × (A – B) /A where— P is the taxable lease payment, A is the total expected income of the lease, over the course of the life of the lease on the date the lease was entered into, and B is the value of the leased asset recognised in the accounts under generally accepted accounting practice on the date the lease was entered into less the expected depreciated value of the leased asset at the end of the lease, determined in accordance with the accounting policy in the financial statements for the year in which the lease is entered into, but where the terms of the lease are amended during the life of the lease such that either of A or B are amended, then, for the accounting period in which that amendment was made and all successive accounting periods, A and B shall be calculated as if a new lease was entered into at the date of amendment, or (b) where section 299 applies in respect of a relevant lease (within the meaning of section 299(1A)), the amount calculated in accordance with section 299(4)(b) in respect of the relevant lease;”, and (b) by the insertion of the following subsection after subsection (3): “(4) (a) Subject to paragraph (b), where a disallowable amount or total spare capacity is calculated in a currency (in this paragraph referred to as the ‘first-mentioned currency’) other than the currency of the State, and is carried forward to a subsequent accounting period as— (i) deemed borrowing cost pursuant to section 835AAD, or (ii) total spare capacity pursuant to section 835AAE, the disallowable amount or total spare capacity carried forward, as the case may be, shall be expressed in the first-mentioned currency for the purposes of the calculations required under this Part. (b) Where in an accounting period there is a change in the currency (in this paragraph referred to as the ‘old currency’) in which a company calculates interest equivalent, or a portion thereof, and the company calculates interest equivalent or a portion thereof in another currency (in this paragraph referred to as the ‘new currency’), the amount, if any, carried forward into that accounting period as— (i) deemed borrowing cost pursuant to section 835AAD, or (ii) total spare capacity pursuant to section 835AAE, shall be expressed in terms of the new currency for the purposes of the calculations required under this Part by reference to the average representative rate of exchange of the old currency for the new currency in the accounting period in which the deemed borrowing cost or total spare capacity, as the case may be, arose.
\n
(c) In this subsection, ‘representative rate of exchange’ has the same meaning as in section 402.”.
\n
(2)Subsection (1) shall apply in respect of an accounting period commencing on or after 1 January 2025.
\n
Amendment of section 481 of Principal Act (relief for investment in films) 48. (1) Section 481 of the Principal Act is amended— (a) in subsection (1)— (i) by the insertion of the following definitions: “ ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state, other than the State, which is a contracting party to the EEA Agreement; ‘key creative role’, in relation to a qualifying film, means— (a) the film director, (b) the film screenwriter, or (c) any other such similar creative role of appropriate seniority as may be specified in regulations made under subsection (2E); ‘lower budget film’ means a qualifying film— (a) which is a feature film or animated film of feature length, (b) in the production of which one or more key creative roles are performed by individuals who are nationals of, or ordinarily resident in, the State or another EEA state, and (c) in respect of which the qualifying expenditure, as determined in accordance with regulations made under subsection (2E), incurred on the production of the film is less than €20,000,000;”, and (ii) in the definition of “film corporation tax credit”, by the substitution of “subsections (1B) and (1C)” for “subsection (1B)”, (b) by the insertion of the following subsection after subsection (1B): “(1C) (a) Where a producer company expects a film to be a lower budget film, the producer company, in making its application under subsection (1A), may apply for the certificate mentioned in that subsection to specify, in addition to that mentioned in that subsection, that an increased film corporation tax credit (in this section referred to as the ‘enhanced credit for lower budget film’) may apply as provided for in paragraph (c). (b) In considering whether, in the certification applied for, he or she should specify that the enhanced credit for lower budget film may apply, the Minister, in accordance with regulations made under subsection (2E), shall have regard to whether the film is expected to satisfy the criteria set out in paragraphs (a) to (c) of the definition of ‘lower budget film’ in subsection (1). (c) Where— (i) the certificate issued under subsection (2) specifies that the enhanced credit for lower budget film may apply, (ii) on completion of production, the qualifying film satisfies the conditions and obligations required by this section, and (iii) the qualifying film is a lower budget film, then, the producer company shall—
\n
(I) in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit for lower budget film as if, in the definition of ‘film corporation tax credit’ in subsection (1), ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, or (II) where a claim has been made for the film corporation tax credit under subsection (2G)(b)(i), in making the claim for the film corporation tax credit under subsection (2G)(b)(ii), calculate the value of the enhanced credit for lower budget film as if, in the definition of ‘film corporation tax credit’ in subsection (1), ‘40 per cent’ were substituted for ‘32 per cent’ for that purpose, less any amount already claimed pursuant to subsection (2G)(b)(i).”, (c) in subsection (2)— (i) in paragraph (a), by the substitution of the following subparagraph for subparagraph (ii): “(ii) specifying— (I) whether or not the regional film development uplift applies, if appropriate, or (II) whether or not the enhanced credit for lower budget film may apply, if appropriate.”, and (ii) in paragraph (b)— (I) in subparagraph (iii), by the substitution of “in the State,” for “in the State, and”, (II) in subparagraph (iv), by the substitution of “if appropriate, and” for “if appropriate,”, and (III) by the insertion of the following subparagraph after subparagraph (iv): “(v) the criteria referred to in subsection (1C)(b), if appropriate,”, and (d) in subsection (2E), by the insertion of— (i) the following paragraph after paragraph (b): “(ba) specifying the roles of appropriate seniority that may be regarded as key creative roles for the purposes of an application for, and certification in respect of, the enhanced credit for lower budget film in accordance with this section,”, and (ii) the following paragraph after paragraph (la): “(lb) specifying the criteria to be considered by the Minister, in relation to the criteria referred to in subsection (1C)(b)— (i) in deciding whether, in the certificate applied for under subsection (1A), he or she should specify that the enhanced credit for lower budget film may apply, and (ii) in specifying conditions in such a certificate, as provided for in subsection (2)(b), and the information required for those purposes to be included in the application made to the Minister under subsection (1A) by a producer company,”.
\n
(2)Subsection (1) shall apply to a qualifying film (within the meaning of section 481 of the Principal Act) in respect of which the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media issues a certificate (within the said meaning) after the coming into operation of this section.
\n
(3)This section shall come into operation on such day as the Minister for Finance may appoint by order.
\n
Tax credit for expenditure on unscripted production 49. (1) The Principal Act is amended by the insertion of the following section after section 487: “487A. (1) In this section— ‘accessibility services’ means services that facilitate the enjoyment of an eligible unscripted programme by persons with a disability (within the meaning of section 2
\n
(1)of the Disability Act 2005 ); ‘broadcast’ and ‘broadcaster’ have the same meanings, respectively, as they have in section 481; ‘cost of on-screen services’ means amounts, excluding travel and subsistence expenses, paid or incurred under— (a) a contract of service, (b) a contract for service, or (c) any other contract, in respect of the provision of on-screen services; ‘creative role’, in relation to the production of an interim or qualifying unscripted programme, means— (a) the director, (b) the production designer, or (c) any other such similar creative role as may be specified in regulations made under subsection (19); ‘date of completion’, in relation to a qualifying unscripted programme, means: (a) in the case of a single programme, the earlier of— (i) the date on which the programme is made available to the public by means of broadcast or transmission on the internet, or (ii) where the programme is commissioned by an undertaking other than the producer company, the date on which the programme has been delivered to and accepted by the undertaking, and (b) in the case of a season, the earlier of— (i) the date on which the last episode of the season is made available to the public by means of broadcast or transmission on the internet, or (ii) where the season is commissioned by an undertaking other than the producer company, the date on which the last episode of the season has been delivered to and accepted by the undertaking, and ‘completed’ shall be construed accordingly; ‘director’ shall be construed in accordance with section 433(4); ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992 as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state, other than the State, which is a contracting party to the EEA Agreement; ‘eligible expenditure’ means the portion of the total cost of production of a qualifying unscripted programme that is expended on the production of the programme in the State as determined in accordance with regulations made under subsection (19)— (a) directly by the producer company concerned on the employment of eligible individuals, in so far as those individuals exercise their employment in the production of the unscripted programme, and (b) directly or indirectly by the producer company concerned on the provision of certain goods, services and facilities specified in the regulations; ‘eligible individual’ means an individual employed by a producer company for the purposes of the production of a qualifying unscripted programme;
\n
‘eligible unscripted programme’ means an unscripted programme which is— (a) produced on a commercial basis with a view to the realisation of profit, (b) produced wholly or mainly for exhibition to the public by means of broadcast on television or transmission on the internet, (c) not produced solely or mainly for exhibition as part of a promotional campaign or advertising for a specific product or undertaking, or as a commercial, (d) in the case of a series in a licensed format, a season of the series where, in the 12 months preceding the application by the producer company for an interim certificate in respect of the season, no interim certificate has been issued in respect of any other season of that series or any season of any other series in that licensed format, and (e) not certified as a qualifying film under section 481; ‘final certificate’ shall be construed in accordance with subsection (9); ‘interim certificate’ shall be construed in accordance with subsection (4); ‘interim unscripted programme’ means an unscripted programme in respect of which— (a) an interim certificate has been issued, and (b) no final certificate has been issued; ‘interim unscripted production corporation tax credit’, in relation to an interim unscripted programme, means an amount incurred in an accounting period equal to 20 per cent of the lowest of— (a) the eligible expenditure amount, (b) 80 per cent of the total cost of production of the interim unscripted programme, and (c) €15,000,000; ‘licensed format’, in relation to a series, means that the details of the original concept and branding of the series are set out in a specified format and that the rights to produce the series in that format can be acquired in accordance with a licence, and references to a format that can be licensed shall be construed accordingly; ‘Minister’ means the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media; ‘on-screen services’ means services (other than accessibility services) provided by an individual for the purpose of the production of an eligible unscripted programme where it is reasonable to consider that the individual could appear on-screen in the eligible unscripted programme in the course of providing those services; ‘producer company’ means a company that— (a) is resident in the State, or in an EEA state, (b) carries on a trade of producing unscripted programmes that are wholly or mainly for exhibition to the public by means of broadcast on television or transmission on the internet, on a commercial basis with a view to the realisation of profit,
\n
(c) is not a company, or a company connected to a company— (i) that is a broadcaster, or (ii) whose business consists wholly or mainly of transmitting films or programmes on the internet, and (d) is not, or is not part of, an undertaking which would be regarded as an undertaking in difficulty; ‘qualifying expenditure’, in relation to an interim unscripted programme or a qualifying unscripted programme, is expenditure other than the cost of on-screen services, determined in accordance with regulations made under subsection (19), incurred by the producer company on the production of the programme; ‘qualifying unscripted programme’ means an unscripted programme in respect of which the Minister has issued a final certificate; ‘Rescuing and Restructuring Guidelines’ means the Communication from the Commission on Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty4 ; ‘season’ means a set of episodes of a series that are commissioned together under the same agreement to be exhibited to the public together or sequentially over a period of not more than 12 months; ‘series’ means an unscripted programme consisting of multiple episodes with a common title produced in a format that can be licensed; ‘total cost of production’, in relation to an interim unscripted programme or a qualifying unscripted programme, means the qualifying expenditure that was wholly, exclusively and necessarily incurred to produce the programme; ‘travel’ means travel by car, motorcycle, taxi, bus, rail, boat or aircraft; ‘travel and subsistence expenses’ means so much of a payment made by a producer company in respect of expenses of travel and subsistence as does not exceed the upper of any relevant rate or rates laid down from time to time by the Minister for Public Expenditure, National Development Plan Delivery and Reform in relation to the payment of expenses of travel and subsistence of a civil servant (within the meaning of the Civil Service Regulation Act 1956 ); ‘undertaking’ means the relevant economic unit that would be regarded as an undertaking for the purposes of the Rescuing and Restructuring Guidelines; ‘undertaking in difficulty’ shall be construed in accordance with section 2.2 of the Rescuing and Restructuring Guidelines; ‘unscripted production corporation tax credit’, in relation to a qualifying unscripted programme, means an amount equal to 20 per cent of the lowest of— (a) the eligible expenditure amount, (b) 80 per cent of the total cost of production of the unscripted programme, and
\n
(c) €15,000,000; ‘unscripted programme’ means a non-fiction audiovisual work consisting of either a single programme or a season, of a kind which is specified as eligible for certification under this section in regulations made under subsection (19); ‘valid claim’ means a claim in relation to an interim unscripted production corporation tax credit or an unscripted production corporation tax credit, as the case may be, which is— (a) made under and in accordance with this section, and (b) in respect of which all information which the Revenue Commissioners may reasonably require to enable them to determine if, and to what extent, the credit is due to a producer company in respect of an accounting period, has been furnished by that company.
\n
(2)Subject to the provisions of this section, a producer company may make an application to the Minister— (a) in relation to an unscripted programme to be produced by the company, for the issue by the Minister of an interim certificate, and (b) in relation to an unscripted programme that is produced and completed by the company, for the issue by the Minister of a final certificate.
\n
(3)An application for an interim or final certificate, as the case may be, under subsection (2) shall be in the form approved by the Minister for that purpose and shall contain such information as may be specified in regulations made under subsection (19).
\n
(4)The Minister may, following an application by a producer company under subsection (2)(a), subject to subsection (5) and in accordance with regulations made under subsection (19), issue to the producer company a certificate (in this section referred to as an ‘interim certificate’) stating— (a) that the certificate is an interim certificate, (b) that the unscripted programme is to be treated as an interim unscripted programme for the purposes of this section, and (c) the expiry date of the interim certificate.
\n
(5)In considering whether to issue an interim certificate, the Minister shall, in accordance with regulations made under subsection (19), have regard to— (a) the timing of the application by reference to the commencement of production in the State, (b) the categories of programmes eligible for certification under this section as specified in regulations made under subsection (19), (c) whether the unscripted programme as proposed is likely to be an eligible unscripted programme when completed, and (d) the contribution which the production of the unscripted programme is expected to make to the promotion and expression of Irish or European culture, by reference to the following matters: (i) the cultural content of the unscripted programme, including its setting, themes, performers and participants, subject matter and language, in particular the Irish language; (ii) the cultural creativity employed in the unscripted programme including— (I) innovative portrayal of Irish culture, (II) the use of a format or concept developed in the State, (III) the use of persons in creative roles, who are nationals of, or ordinarily resident in, the State or an EEA state, and (IV) the use of music, script or other materials written or created in the State or by persons who are nationals of, or ordinarily resident in, the State or an EEA state; (iii) the contribution of the unscripted programme to the development of a concentration of cultural activity by reference to such matters as— (I) the proportion of creative work carried out in the State, (II) the number of key positions in the production of the unscripted programme occupied by persons who are nationals of, or ordinarily resident in, the State or an EEA state, and (III) the proportion of the members of the production team who are nationals of, or ordinarily resident in, the State or an EEA state; (iv) the cultural contribution of the unscripted programme by reference to matters including the educational content of programmes aimed at children and the inclusion of themes relating to— (I) diversity and equality, (II) promoting the protection and restoration of Irish or European ecosystems, and (III) raising awareness of the exigencies of increasing environmental sustainability and minimising climate change.
\n
(6)Where an interim certificate is issued, the Minister, having regard to the matters specified in subsection (5) in accordance with regulations made under subsection (19), shall specify in the interim certificate such conditions, as the Minister may consider proper, including conditions in relation to— (a) the employment-related responsibilities of the producer company in the production of the unscripted programme, (b) the employment of personnel, including trainees, (other than the producer) for that production, (c) in respect of the Communication from the Commission (2013/C 332/01)5 , the maximum aid intensity, and (d) the nature and detail of acknowledgement in the opening titles or closing credits of the unscripted programme.
\n
(7)The Minister may amend or revoke any condition (including a condition added by virtue of this subsection) specified in an interim certificate, or add to such conditions, by giving notice in writing to the producer company concerned of the amendment, revocation or addition, as the case may be, and this section shall apply as if— (a) a condition so amended or added by the notice was specified in the interim certificate, and (b) a condition so revoked was not specified in the interim certificate.
\n
(8)On the expiry of an interim certificate, the interim certificate shall cease to have effect and is treated as never having had effect unless— (a) an application has been made in advance of the expiry date to the Minister for a certificate under subsection (2)(b), and (b) on the determination of the application referred to in paragraph (a), a final certificate is issued by the Minister.
\n
(9)The Minister may, following an application by a producer company under subsection (2)(b), where he or she is satisfied that the unscripted programme as completed is an eligible unscripted programme, subject to subsection (10) and in accordance with regulations made under subsection (19), issue to the producer company a certificate (in this section referred to as a ‘final certificate’) stating— (a) that the certificate is a final certificate, and (b) that the unscripted programme is to be treated as a qualifying unscripted programme for the purposes of this section.
\n
(10)In considering whether to issue a final certificate, the Minister shall, in accordance with regulations made under subsection (19), have regard to— (a) the contribution which the unscripted programme makes to the promotion and expression of Irish or European culture, by reference to the matters referred to in subparagraphs (i) to (iv) of subsection (5)(d), and (b) whether the conditions specified in the interim certificate issued in respect of the unscripted programme have been satisfied.
\n
(11)Where a final certificate is issued, the Minister, having regard to the matters specified in subsection (10) in accordance with regulations made under subsection (19), shall specify in the final certificate such conditions, as the Minister may consider proper, including conditions in relation to— (a) the employment-related responsibilities of the producer company for the production of the unscripted programme, (b) in respect of the Communication from the Commission (2013/C 332/01), the maximum aid intensity, and (c) the nature and detail of acknowledgement in the opening titles or closing credits of the unscripted programme.
\n
(12)The Minister may amend or revoke any condition (including a condition added by virtue of this subsection) specified in a final certificate, or add to such conditions, by giving notice in writing to the producer company concerned of the amendment, revocation or addition, as the case may be, and this section shall apply as if— (a) a condition so amended or added by the notice was specified in the final certificate, and (b) a condition so revoked was not specified in the final certificate.
\n
(13)Where a producer company has received an interim certificate or a final certificate, as the case may be, in respect of an unscripted programme, no other company may subsequently be regarded as the producer company in relation to that programme for the purposes of this section.
\n
(14)A producer company shall not make a claim for an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22) where— (a) there has not been issued to the producer company either an interim certificate, as respects claims made under subsection (21), or a final certificate, as respects claims made under subsection (22), by the Minister in respect of the unscripted programme concerned, (b) as respects claims made under subsection (21), the interim certificate has expired, (c) the producer company, any company controlled by the producer company and each person who is either the beneficial owner of, or able directly or indirectly to control, more than 15 per cent of the ordinary share capital of the producer company (in this paragraph referred to as a ‘relevant person’), as the case may be, is not in compliance with all of the obligations imposed by the Tax Acts, the Capital Gains Tax Acts or the Value-Added Tax Consolidation Act 2010 in relation to— (i) the payments or remittances of taxes, interest or penalties required to be paid or remitted under those Acts, (ii) the delivery of returns, and (iii) requests to supply to an officer of the Revenue Commissioners accounts of, or other information about, any business carried on by the producer company, or relevant person, as the case may be, (d) as respects a claim made under subsection (22)— (i) the eligible expenditure amount is less than €125,000, (ii) the total cost of the production of the project is less than €250,000, or (iii) the return in which that claim is made is in respect of an accounting period of less than 12 months, unless the accounting period, when taken together with the immediately preceding accounting period, is a period of not less than 12 months, (e) the producer company is an undertaking in difficulty, (f) any company in an undertaking of which the producer company is part is subject to an outstanding recovery order following a previous decision of the European Commission that declared an aid illegal and incompatible with the internal market, (g) the producer company is resident in an EEA state and does not carry on business in the State through a branch or agency, or (h) the producer company has been carrying on the trade referred to in paragraph (b) of the definition in subsection (1) of ‘producer company’ for a period of less than 12 months prior to making a claim.
\n
(15)A producer company shall not make a claim for an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22) where— (a) there is no commercial rationale for the corporate structure of the producer company— (i) for the production, financing, distribution or sale of the unscripted programme, or (ii) for all of the purposes referred to in subparagraph (i), (b) the corporate structure of the producer company would hinder the Revenue Commissioners in verifying compliance with any of the provisions governing the relief, or (c) prior to making a claim, the producer company does not have such information and records as the Revenue Commissioners may reasonably require for the purposes of determining whether that claim complies with this section.
\n
(16)A claim by a producer company for an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22) shall not include expenditure— (a) where it would be reasonable to consider that the amount of such expenditure or any particular item of such expenditure has been inflated, (b) in respect of which the company has claimed relief under Part 29, (c) where such expenditure is an item of capital expenditure, incurred by any company on the production of an unscripted programme, in respect of which relief was already claimed under this section, (d) in respect of which the company has claimed relief under section 481, or (e) that has been or is to be met directly or indirectly by grant assistance or any other assistance which is granted by or through— (i) the State or another Member State of the European Union, (ii) any board established by statute, any public or local authority or any other agency of the State or another Member State or an institution, office, agency or other body of the European Union, or (iii) a state, other than the State or a Member State referred to in subparagraph (i), and any board, authority, institution, office, agency or other body in such state.
\n
(17)In carrying out their functions under this section, the Revenue Commissioners may— (a) consult with any person, agency or body of persons, as in their opinion may be of assistance to them, (b) notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by, or under, the Tax Acts or any other statute or otherwise, disclose any detail in an application or claim of a producer company under this section which they consider necessary for the purposes of such consultation, and (c) where they have reason to believe that financial arrangements have been entered into in contravention of subsection (18)(a), seek any information they consider appropriate in relation to the arrangements or in relation to any person who is, directly or indirectly, a party to the arrangements.
\n
(18)A company shall not be regarded as a producer company in respect of an interim unscripted programme or a qualifying unscripted programme for the purposes of this section— (a) where the financial arrangements which the company enters into in relation to the interim unscripted programme or the qualifying unscripted programme are— (i) financial arrangements of any type with a person resident, registered or operating in a territory other than— (I) an EEA state, or (II) a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or (ii) financial arrangements under which funds are channelled, directly or indirectly, to, or through, a territory other than a territory referred to in clause (I) or (II) of subparagraph (i), other than where— (A) those arrangements relate to the production of part of the interim unscripted programme or the qualifying unscripted programme in a territory other than a territory referred to in clause (I) or (II) of subparagraph (i), (B) the producer company has sufficient records to enable the Revenue Commissioners to verify, in the case of the production of an interim unscripted programme or a qualifying unscripted programme in such a territory, the amount of each item of expenditure on the production expended in the territory, whether expended by the producer company or by any other person, and (C) the producer company has such records in place to substantiate such expenditure in advance of making a claim under either or both of subsections (21) and (22), (b) without prejudice to the generality of section 886, where the company fails to provide, when requested to do so by the Revenue Commissioners, for the purposes of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by the Minister under subsection (4) or (9), evidence to vouch each item of expenditure in the State or elsewhere on the production of the interim unscripted programme and the qualifying unscripted programme, whether expended by the producer company or by any other person engaged, directly or indirectly, by the producer company to provide goods, services or facilities in relation to such production and, in particular, such evidence shall include— (i) records required to be kept or retained by the producer company by virtue of section 886, and (ii) records, in relation to the production of the interim unscripted programme and the qualifying unscripted programme, required to be kept or retained by that other person by virtue of section 886, or which would be so required if that other person were subject to the provisions of that section,
\n
(c) in relation to a claim under subsection (22), where the company fails to provide, when requested to do so by the Revenue Commissioners, for the purposes of verifying compliance with the provisions governing the relief or with any condition specified in a certificate issued by the Minister under subsection (9), a copy of the unscripted programme in such form and manner required under paragraph (d)(ii), (d) where the company, within such period as is specified in the regulations made under subsection (19), fails to— (i) notify the Minister in writing of the date of completion of the production of the qualifying unscripted programme, and (ii) provide to the Minister a copy of the completed unscripted programme in such form and manner as may be specified in those regulations, (e) unless the company makes a claim under subsection (22) and has available, prior to making that claim, a compliance report, in such form and manner as may be specified in the regulations made under subsection (19), which provides proof that— (i) the provisions of this section in so far as they apply in relation to the company have been met, (ii) any conditions attaching to the interim certificate issued to the company in relation to the interim unscripted programme have been fulfilled, and (iii) any conditions attaching to the final certificate issued to the company in relation to the qualifying unscripted programme have been fulfilled, or (f) where the company ceases to carry on the trade referred to in paragraph (b) of the definition in subsection (1) of ‘producer company’ before a date which is 12 months after the date of completion.
\n
(19)The Revenue Commissioners with the consent of the Minister for Finance and, in relation to the matters specified in paragraphs (a) to (c), with the consent of the Minister, shall make regulations with respect to the administration by the Revenue Commissioners of the relief under this section and with respect to the matters to be considered by the Minister for the purposes of subsections (5) and (10) and, without prejudice to the generality of the foregoing, regulations under this subsection may include provisions— (a) governing the application to the Minister for interim or final certification, the timing of such applications and the information and documents to be provided by the producer company in or with such applications, (b) specifying the period within which a producer company shall notify the Minister of the date of completion of the production of a qualifying unscripted programme, (c) specifying the period within which, and the form, number and manner in which, copies of a qualifying unscripted programme shall be provided to the Minister, (d) specifying the categories of programmes eligible for certification by the Minister under this section, (e) governing the records that a producer company shall maintain or provide to the Revenue Commissioners, (f) governing the period for which, and the place at which, such records shall be maintained, (g) specifying the form and content of the compliance report that shall be available in accordance with subsection (18)(e), the manner in which such report shall be made and verified, and the documents to accompany the report, (h) governing the type of expenditure which may be treated as qualifying or eligible expenditure on the production of an interim unscripted programme or a qualifying unscripted programme, including the period within which such expenditure may be incurred or paid, (i) governing the provision of the goods, services and facilities referred to in the definition in subsection (1) of eligible expenditure, including the place of origin of those goods, services and facilities, the place in which they are provided and the location of the supplier, (j) specifying the roles that may be regarded as creative roles for the purposes of an application for, and certification in respect of, an interim unscripted programme or qualifying unscripted programme, (k) specifying the currency exchange rate to be applied to expenditure on the production of an interim unscripted programme or a qualifying unscripted programme,
\n
(l) specifying the criteria to be considered by the Minister in relation to the matters referred to in subsections (5) and (10)— (i) in deciding whether to issue an interim certificate or a final certificate, and (ii) in specifying conditions in such certificate under subsection (6) or (11), and the information required for those purposes to be included in the application made to the Minister by a producer company, (m) governing the employment of eligible individuals and the circumstances in which expenditure by a producer company would be regarded as expenditure on the employment of those individuals in the production of a qualifying unscripted programme, and (n) governing financial arrangements in accordance with subsection (18)(a).
\n
(20)The Revenue Commissioners shall, for the purpose of making regulations under subsection (19)— (a) in relation to the matter referred to in paragraph (d), in consultation with the Minister for Finance and the Minister, have regard to— (i) the public interest in particular categories of unscripted programme being broadcast or transmitted on the internet, and (ii) any harm that may result from the broadcast or transmission on the internet of particular categories of unscripted programme, (b) in relation to the matter referred to in paragraph (h), in consultation with the Minister for Finance, have regard to— (i) whether the type of expenditure is directly related to the production of an unscripted programme, and (ii) the extent to which the type of expenditure is incurred directly by the producer company on the production of an unscripted programme, and (c) in relation to the matter referred to in paragraph (i), in consultation with the Minister for Finance, have regard to— (i) the territorial spending obligations permissible under the Communication from the Commission (2013/C 332/01), and (ii) the extent to which the goods, services or facilities support the contribution made by the production of unscripted programmes to the promotion or expression of Irish or European culture.
\n
(21)(a) Where the Minister has issued an interim certificate in relation to an interim unscripted programme to a producer company and the provisions of this section have been complied with, a producer company may, in advance of the date of completion, make a claim for the interim unscripted production corporation tax credit where— (i) the interim certificate has not expired, and (ii) the aggregate of all claims made pursuant to the interim certificate does not exceed 20 per cent of €15,000,000. (b) A claim under this subsection shall be made within 12 months from the end of the accounting period in which the expenditure giving rise to the claim is incurred and shall be made in the return, required under Part 41A, in respect of that accounting period.
\n
(22)(a) Where the Minister has issued a final certificate in relation to a qualifying unscripted programme to a producer company and the provisions of this section have been complied with, a producer company may make a claim for the unscripted production corporation tax credit, less the amount, if any, already claimed in respect of the qualifying unscripted programme under subsection (21). (b) A claim under this subsection shall be made— (i) within 12 months from the end of the accounting period in which the last of the expenditure giving rise to the claim is incurred, or (ii) in a case in which the final certificate is issued after a date which is 3 months prior to the expiry of the 12-month period referred to in paragraph (a), within 3 months from the date on which that certificate is issued. (c) A claim under this subsection shall be made in the return, required under Part 41A, in respect of the accounting period referred to in subparagraph (i) of paragraph (b).
\n
(23)Where a producer company makes a claim for an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22), the producer company shall specify as regards the amount claimed under subsection (21) or (22), as the case may be, whether that amount or any portion of that amount is to be— (a) treated as an overpayment of tax, for the purposes of section 960H, or (b) paid to the company by the Revenue Commissioners.
\n
(24)Where a claim in respect of an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22) is made, the amount of the interim unscripted production corporation tax credit or the amount of the unscripted production corporation tax credit, as the case may be, shall be paid or offset in full, in the manner specified by the producer company under subsection (23), by the Revenue Commissioners within 48 months from when a valid claim is made.
\n
(25)No amount of the interim unscripted production corporation tax credit or the unscripted production corporation tax credit shall be paid or offset under subsection (24) unless a valid claim has been made to the Revenue Commissioners for that purpose.
\n
(26)Nothing in this section shall prevent the Revenue Commissioners from examining a claim subsequent to any payment or offset having been made and making or amending an assessment, as the case may be, under Chapter 5 of Part 41A.
\n
(27)The interim unscripted production corporation tax credit or the unscripted production corporation tax credit, if any, arising to a producer company in accordance with this section shall not be income of the producer company or another company for the purposes of corporation tax.
\n
(28)Any claim in respect of an interim unscripted production corporation tax credit under subsection (21) or an unscripted production corporation tax credit under subsection (22) (whether, in either case, the amount of the credit is to be treated as an overpayment of tax under subsection (23)(a) or paid to the company under subsection (23)(b)) shall, for the purposes of sections 851A and 851B, Chapter 4 of Part 38 and Part 47, be treated as a claim for a credit and the amount so claimed shall be treated as an amount of tax refundable.
\n
(29)Where a producer company specifies that an interim unscripted production corporation tax credit or an unscripted production corporation tax credit is to be treated, under subsection (23)(a), as an overpayment of tax, and where that amount is, under section 960H, offset in whole or in part against the company’s corporation tax payable (within the meaning of Part 41A) for the accounting period, then, for the purposes of calculating the amount of preliminary tax due in respect of that accounting period and the subsequent accounting period under section 959AR or 959AS, as the case may be, the amount of corporation tax payable by the company for that accounting period shall be reduced by the amount so offset.
\n
(30)In respect of any claim in respect of an interim unscripted production corporation tax credit or an unscripted production corporation tax credit, as the case may be, that remains unpaid, for the purposes of determining an amount in accordance with subsection (3) or (4) of section 1077F, a reference to an amount of tax that would have been payable for the relevant period by the person concerned shall be read as if it were a reference to the amount so claimed.
\n
(31)(a) Subject to paragraph (b), where a producer company makes a claim in respect of an interim unscripted production corporation tax credit or an unscripted production corporation tax credit and it is subsequently found that the claim is not as authorised by this section, then— (i) the company, (ii) any director of the company, or (iii) any person referred to in subsection (14)(c), may be charged to tax under Case IV of Schedule D for the accounting period, or year of assessment, as the case may be, in respect of which an amount was paid or offset under subsection (23), in an amount equal to— (I) in the case of a company, 4 times, and (II) in the case of an individual, one hundred fortieths, of so much of the amount of the interim unscripted production corporation tax credit or the unscripted production corporation tax credit, as the case may be, as is not so authorised. (b) An amount chargeable to tax under this subsection shall be treated— (i) as income against which no loss, deficit, expense or allowance may be set off, and (ii) as not forming part of the income of the company for the purposes of calculating a surcharge under section 440.
\n
(32)The circumstances in which a claim is not authorised by this section shall include any circumstances where the amount was claimed under either or both subsections (21) and (22), or paid or offset under subsection (24) and— (a) the company made a claim contrary to either or both subsections (21) and (22), or (b) the producer company— (i) fails to satisfy or comply with any condition or obligation under this section or regulations made under this section, (ii) fails to satisfy or comply with any condition or obligation specified in a certificate, or (iii) at any time on or before the date of completion fails to comply with any of the obligations referred to in subsection (14)(c).
\n
(33)Where an amount is charged to tax in accordance with subsection (31), the amount so charged shall, for the purposes of section 1080, be deemed to be tax due and payable and shall carry interest as determined in accordance with subsection (2)(c) of section 1080 as if a reference to the date when the tax became due and payable were a reference to the date the amount was paid or offset, under section 960H, by the Revenue Commissioners.
\n
(34)Notwithstanding section 851A, where a producer company obtains relief under this section, the Revenue Commissioners may disclose the following taxpayer information in accordance with State aid transparency requirements: (a) the name of the company; (b) the name of the unscripted programme; (c) the number of the certificate of incorporation of the company; (d) in respect of the principal activity carried on by the company, the NACE classification code, as determined in accordance with Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of 20 December 20066 as amended by Regulation (EU) 2019/1243 of the European Parliament and of the Council of 20 June 20197 and Commission Delegated Regulation (EU) 2023/137 of 10 October 20228 ; (e) the amount of interim unscripted production corporation tax credit or unscripted production corporation tax credit, as the case may be, granted, by reference to ranges set out in page 30, paragraph 166(vi) of the Guidelines on State Aid to Promote Risk Finance9 , inserted by Communication from the Commission (2014/C 198/02)10 ; (f) whether the company is— (i) a category of enterprise referred to in Article 2.1 of Annex 1 to Commission Regulation (EU) No. 651/2014 of 17 June 201411 , or (ii) a category of enterprise which is larger than the categories of enterprise referred to in subparagraph (i); (g) the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059/2003 of the European Parliament and of the Council of 26 May 200312 amended by Regulation (EC) No. 1888/2005 of the European Parliament and of the Council of 26 October 200513 , Commission Regulation (EC) No. 105/2007 of 1 February 200714 , Regulation (EC) No. 176/2008 of the European Parliament and of the Council of 20 February 200815 , Regulation (EC) No. 1137/2008 of the European Parliament and of the Council of 22 October 200816 , Commission Regulation (EU) No. 31/2011 of 17 January 201117 , Council Regulation (EU) No. 517/2013 of 13 May 201318 , Commission Regulation (EU) No. 1319/2013 of 9 December 201319 , Commission Regulation (EU) No. 868/2014 of 8 August 201420 , Commission Regulation (EU) 2016/2066 of 21 November 201621 , Regulation (EU) 2017/2391 of the European Parliament and of the Council of 12 December 201722 , Commission Delegated Regulation 2019/1755 of 8 August 201923 , and Commission Delegated Regulation (EU) 2023/674 of 26 December 202224 in which the company is located; (h) the date on which the interim unscripted production corporation tax credit or unscripted production corporation tax credit, as the case may be, is obtained.
\n
(35)In relation to information provided to the Minister by a company for the purposes of obtaining an interim or final certificate under this section, the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, in processing such information, shall, for the purposes of section 851A, be deemed to be engaged as a service provider with respect to the administration of this section.
\n
(36)No amount of an interim unscripted production corporation tax credit or an unscripted production corporation tax credit shall be paid or offset under subsection (24) by the Revenue Commissioners in respect of an interim or final certificate issued after 31 December 2028.
\n
(37)Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.
\n
(2)Subsection (1) shall apply to qualifying expenditure (within the meaning of section 487A of the Principal Act) incurred on or after the coming into operation of this section.
\n
(3)This section shall come into operation on such day or days as the Minister for Finance may appoint by order.
\n
Participation exemption for certain foreign distributions 50. (1) The Principal Act is amended— (a) in Chapter 2 of Part 35, by the insertion of the following section after section 831A: “Participation exemption for certain foreign distributions 831B. (1) In this section— ‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement; ‘EEA state’ means a state which is a contracting party to the EEA Agreement; ‘foreign tax’, in relation to a territory other than the State, means a tax which— (a) corresponds to corporation tax in the State, (b) generally applies to income, profits and gains arising to a company that is resident for the purposes of tax in that territory, and (c) is imposed at a nominal rate greater than zero per cent; ‘listed territory’ has the same meaning as it has in section 835YA subject to the modification that references to ‘an accounting period beginning’ shall be read as references to ‘the making of a distribution’; ‘parent company’, in relation to a relevant subsidiary, means a company that holds a qualifying participation in the relevant subsidiary and— (a) is resident in the State, or (b) not being resident in the State— (i) is, by virtue of the law of an EEA state, resident for the purposes of foreign tax in the EEA state, and (ii) is not generally exempt from foreign tax; ‘qualifying participation’ shall be construed in accordance with subsection (2); ‘reference period’, in relation to a relevant distribution, means the period of 5 years immediately before the date on which the relevant distribution is made; ‘relevant distribution’ means a distribution, or that part of a distribution, that— (a) constitutes income in the hands of the recipient for the purposes of corporation tax, and (b) is made by a relevant subsidiary in respect of the relevant subsidiary’s share capital— (i) out of the profits (within the meaning of section 21B(1)(a)) of the relevant subsidiary, or (ii) out of the assets of the relevant subsidiary where the cost of the distribution, or that part of the distribution, as the case may be, falls on the relevant subsidiary, but, without prejudice to the generality of paragraphs (a) and (b), does not include— (I) a distribution, or that part of a distribution, that has been, or may be, deducted for the purposes of tax in any territory outside the State under the law of that territory, (II) a distribution in a winding up, (III) any interest or other income from debt claims providing rights to participate in a company’s profits (within the meaning of section 21B(1)(a)),
\n
(IV) any amount considered to be interest equivalent (within the meaning of section 835AY), or (V) any dividend paid or other distribution made by an offshore fund as construed in accordance with section 743; ‘relevant period’, in relation to a relevant distribution, means the period— (a) beginning on the date— (i) that is 5 years immediately before the date on which the relevant distribution is made, or (ii) on which the relevant subsidiary making the relevant distribution was incorporated or formed, whichever is the later, and (b) ending on the date on which the relevant distribution is made; ‘relevant subsidiary’, in relation to a relevant distribution, means a company that— (a) is, on the date on which it makes the relevant distribution and was, throughout the relevant period— (i) by virtue of the law of a relevant territory, resident for the purposes of foreign tax in the relevant territory, and (ii) not generally exempt from foreign tax, (b) did not, at any time during the reference period, acquire— (i) another business or part of another business, or (ii) the whole or greater part of the assets used for the purposes of another business, where the business concerned was previously carried on by another company that was not, by virtue of the law of a relevant territory, resident for the purposes of foreign tax in a relevant territory— (I) from the date the reference period commences until the date the acquisition referred to in subparagraph (i) or (ii) takes place, or (II) where the other company was incorporated or formed during the reference period, from the date the other company was incorporated or formed until the date the acquisition referred to in subparagraph (i) or (ii) takes place, and (c) was not formed through a merger at any time during the reference period, where a party to the merger was another company that was not, by virtue of the law of a relevant territory, resident for the purposes of foreign tax in a relevant territory— (i) from the date the reference period commences until the date the merger takes place, or (ii) where the other company was incorporated or formed during the reference period, from the date the other company was incorporated or formed until the date the merger takes place; ‘relevant territory’ means— (a) an EEA state other than the State, (b) not being such an EEA state, a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or (c) not being a territory referred to in paragraph (a) or (b), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law,
\n
but does not include a listed territory.
\n
(2)(a) For the purposes of this section, a company shall be regarded as holding a qualifying participation in a relevant subsidiary where the company directly or indirectly owns ordinary share capital in the relevant subsidiary, by virtue of which the company— (i) owns not less than 5 per cent of the ordinary share capital of the relevant subsidiary, (ii) is beneficially entitled to not less than 5 per cent of the profits available for distribution to equity holders of the relevant subsidiary, and (iii) would be beneficially entitled on a winding up of the relevant subsidiary to not less than 5 per cent of the assets available for distribution to equity holders of the relevant subsidiary. (b) For the purposes of paragraph (a)— (i) subsections (2) to (10) of section 9 shall apply with any necessary modifications, (ii) the following shall not be included for the purposes of determining whether a company holds a qualifying participation in a relevant subsidiary: (I) share capital in the relevant subsidiary that the company owns directly if a profit on a sale of those shares would be treated as a trading receipt of the company’s trade; (II) share capital in the relevant subsidiary that the company owns indirectly and which— (A) is owned through another company that is not resident in the State or that is not, by virtue of the law of a relevant territory, resident for the purposes of foreign tax in the relevant territory, or (B) is owned directly by another company for which a profit on the sale of the shares in the relevant subsidiary by that other company would be a trading receipt of that other company, and (iii) sections 413 to 419 shall apply with any necessary modifications as they apply for the purposes of Chapter 5 of Part 12 but— (I) without regard to paragraph (c) of section 411(1) in so far as that paragraph relates to those sections, and (II) as if the following subsection were substituted for subsection (1) of section 419: ‘(1) In this Chapter, ‘the relevant accounting period’ means the accounting period current at the time in question.’.
\n
(3)Where in an accounting period— (a) a relevant subsidiary makes a distribution to a parent company of the relevant subsidiary that is, or part of which is, a relevant distribution, and (b) the parent company would, but for this section, be chargeable to corporation tax in respect of the relevant distribution under— (i) Case III of Schedule D and the amount on which the parent company would be chargeable to corporation tax would not be computed in accordance with the provisions applicable to Case I of Schedule D, or (ii) Case IV of Schedule D in accordance with section 138, then, subject to subsections (5) to (8), and except where otherwise provided by the Corporation Tax Acts, corporation tax shall not be chargeable on the relevant distribution and the relevant distribution shall not be taken into account in computing income for corporation tax.
\n
(4)Without prejudice to the generality of any other provision of the Tax Acts, where in any case a parent company is not chargeable to corporation tax on a relevant distribution by virtue of this section, that parent company shall not be entitled to a deduction, reduction, credit or other relief for tax paid under the laws of a relevant territory in respect of that relevant distribution.
\n
(5)Subsection (3) shall apply only— (a) where the parent company holds a qualifying participation in the relevant subsidiary for an uninterrupted period of not less than 12 months, being a period during which the relevant distribution is made, and (b) if the relevant distribution is made by the relevant subsidiary in respect of the relevant subsidiary’s share capital out of the assets of the relevant subsidiary, where any gain on the disposal of that share capital by the parent company on the date on which the relevant distribution is made would not be a chargeable gain in accordance with section 626B.
\n
(6)Subsection (3) shall not apply to a relevant distribution made to— (a) an assurance company where the relevant distribution is taxable in accordance with the provisions of Chapters 1 and 3 of Part 26, or (b) an undertaking for collective investment (within the meaning of section 738) which is a company.
\n
(7)(a) Subsection (3) shall not apply to a relevant distribution which arises in respect of an arrangement, or part of an arrangement, which— (i) has been put in place for the main purpose of, or one of the main purposes of which is, obtaining a tax advantage, and (ii) is not genuine having regard to all the facts and circumstances. (b) For the purposes of paragraph (a)(ii), an arrangement, or part of an arrangement, as the case may be, shall be regarded as not genuine to the extent that it is not put into place for valid commercial reasons which reflect economic reality.
\n
(8)(a) Subsection (3) shall not apply in respect of a relevant distribution made by a relevant subsidiary to a parent company unless the parent company makes a relevant claim for the accounting period in which the relevant distribution is made. (b) In this subsection, ‘relevant claim’, in relation to an accounting period, means a claim made by a parent company in respect of all the relevant distributions made to that parent company in the accounting period by the relevant subsidiaries in respect of which that parent company holds a qualifying participation. (c) A relevant claim for an accounting period shall be made in the return required to be delivered under Part 41A in respect of the accounting period.”, (b) in section 129A, by the insertion of the following subsection after subsection (5): “(6) Subsection (2) shall not apply to such amount of a distribution as is paid out of profits arising before the paying company became resident in the State, where, if the distribution had been paid on the last date before the date the paying company became resident in the State (or the last such date where there was more than one date), corporation tax would not have been chargeable on the distribution under section 831B if a relevant claim under subsection (8) of section 831B had been made under that section.”, (c) in section 753C(4), by the substitution of “section 129A, section 138 or section 831B” for “section 129A or section 138”, (d) in section 835E(2)(b)(ii)(II), by the substitution of “section 129 or 831B” for “section 129”, and (e) in section 835Q(4), by the substitution of the following paragraph for paragraph (c): “(c) (i) where subparagraph (i) of paragraph (a) applies, as has been subject to tax in the relevant Member State referred to in that subparagraph, or (ii) where subparagraph (ii) of paragraph (a) applies, in respect of which a relevant claim under subsection (8) of section 831B has not been made under that section in respect of the accounting period.”.
\n
(2)Subsection (1) shall apply in respect of a relevant distribution (within the meaning of section 831B of the Principal Act) made on or after 1 January 2025.
\n
Amendment of section 486C of Principal Act (relief from tax for certain start-up companies) 51. (1) Section 486C of the Principal Act is amended— (a) in subsection (1)(a)— (i) in the definition of “total contribution”, in subparagraph (i), by the substitution of “company and specified self-employment contributions” for “company”, and (ii) by the insertion of the following definitions: “ ‘self-employment contribution limit’ means, subject to subsection (6), €1,000; ‘Self-employment Pay-Related Social Insurance’ means the contribution payable under section 21
\n
(1)(c) of the Social Welfare Consolidation Act 2005 ; ‘specified self-employment contribution’, in relation to an individual, means the lesser of— (i) the amount of Self-employment Pay-Related Social Insurance paid by the individual in respect of emoluments from the company to that individual and which the company has remitted to the Collector-General in the accounting period, and (ii) the self-employment contribution limit;”, and (b) in subsection (6)— (i) in paragraph (a), by the substitution of “limit,” for “limit, and”, and (ii) by the insertion of the following paragraph after paragraph (a): “(aa) the self-employment contribution limit, and,”.
\n
(2)Subsection (1) shall apply for accounting periods commencing on or after 1 January 2025.
\n
Amendment of section 835YA of Principal Act (non-cooperative jurisdictions: modified application of sections 835T, 835U and 835V) 52. Section 835YA of the Principal Act is amended by the substitution of the following subsection for subsection (1): “(1) In this section, ‘listed territory’ means— (a) in relation to an accounting period beginning on or after 1 January 2021 but before 1 January 2022, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes25 , as replaced by the EU list of non-cooperative jurisdictions for tax purposes Report by the Code of Conduct Group (business taxation) suggesting amendments to the Annexes to the Council conclusions of 18 February 202026 , (b) in relation to an accounting period beginning on or after 1 January 2022 but before 1 January 2023, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes27 , (c) in relation to an accounting period beginning on or after 1 January 2023 but before 1 January 2024, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes28 , (d) in relation to an accounting period beginning on or after 1 January 2024 but before 1 January 2025, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes29 , and (e) in relation to an accounting period beginning on or after 1 January 2025, a territory included in Annex 1 of the Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes30 .”.
\n
Chapter 6
\n
Capital Gains Tax Repeal of section 46 of Finance (No. 2) Act 2023 53. Section 46 of the Finance (No. 2) Act 2023 is repealed.
\n
Relief for investment in innovative enterprises 54. (1) The Principal Act is amended— (a) in Part 19, by the insertion of the following Chapter after section 600A: “Chapter 6A Relief for Investment in Innovative Enterprises Interpretation 600B. In this Chapter— ‘accounting period’ shall be determined in accordance with section 27; ‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions (whether enforceable or not); ‘associate’ has the same meaning in relation to a person as it has by virtue of subsection (3) of section 433 in relation to a participator; ‘authorised officer’ means an officer of the Revenue Commissioners authorised under section 600Q(1); ‘business plan’ has the same meaning as in section 493; ‘certificate of going concern’ has the meaning given to it by section 600F(3); ‘certificate of commercial innovation’ has the meaning given to it by section 600F(4); ‘certificates of qualification’ means— (a) a certificate of going concern, and (b) a certificate of commercial innovation; ‘control’ shall be construed in accordance with subsections (2) to (6) of section 432; ‘date of investment’ means the date of the issue of the eligible shares; ‘director’ shall be construed in accordance with section 433(4); ‘EEA state’ has the same meaning as in section 489; ‘employee’ has the same meaning as in section 983; ‘enterprise’ has the same meaning as in Annex I of the General Block Exemption Regulation; ‘eligible shares’ shall be construed in accordance with section 494; ‘expansion risk finance investment’ has the same meaning as in section 493; ‘follow-on risk finance investment’ has the same meaning as in section 493; ‘General Block Exemption Regulation’ has the same meaning as in Part 16; ‘innovative enterprise’ has the meaning given to it by Article 2(80) of the General Block Exemption Regulation; ‘linked businesses’ has the same meaning as in Part 16; ‘partner businesses’ has the same meaning as in Part 16; ‘partnership agreement’ means any valid written agreement of the partners governed by the law of the State and subject to the exclusive jurisdiction of the courts of the State as to the affairs of a partnership and the conduct of its business as may be amended, supplemented or restated from time to time; ‘qualifying company’ shall be construed in accordance with section 600C; ‘qualifying investment’ shall be construed in accordance with section 600J; ‘qualifying investor’ shall be construed in accordance with section 600H; ‘qualifying partnership’ shall be construed in accordance with section 600N;
\n
‘qualifying subsidiary’ shall be construed in accordance with section 600D; ‘relevant trading activities’ has the same meaning as in Part 16; ‘relief group’ means a company, its partner businesses and linked businesses, taken together, and includes any relief group of which a company is a member and any company that was, at any time, a member of a relief group with a qualifying company or its qualifying subsidiaries; ‘SME’ has the same meaning as in Part 16; ‘undertaking in difficulty’ has the same meaning as in the General Block Exemption Regulation; ‘unlisted’ has the same meaning as in Part 16.
\n
Qualifying company 600C. For the purposes of this Chapter, a company shall be a qualifying company if it holds certificates of qualification.
\n
Qualifying subsidiary 600D. For the purposes of this Chapter, a subsidiary shall be a qualifying subsidiary where it is a company to which subparagraphs (ii) and (iii) of section 600F(2)(a) apply and satisfies the following conditions: (a) the subsidiary is a 51 per cent subsidiary of— (i) the applicant company (within the meaning of section 600F), or (ii) the qualifying company; (b) no other person has control of the subsidiary; (c) no arrangements are in existence by virtue of which the conditions specified in paragraphs (a) and (b) could cease to be satisfied.
\n
Qualifying investment (company perspective) 600E. (1) An investment shall not be a qualifying investment unless it is based on a business plan.
\n
(2)An investment shall not be a qualifying investment if it is an expansion risk finance investment or a follow-on risk finance investment.
\n
(3)An investment shall not be a qualifying investment unless the qualifying company provides a copy of the certificates of qualification to the qualifying investor or qualifying partnership, as the case may be.
\n
Certificates of qualification 600F. (1) (a) Subject to subsection (2), a company (in this section referred to as the ‘applicant company’) that is seeking to raise investments from qualifying investors or qualifying partnerships may apply to the Revenue Commissioners for the purpose of obtaining— (i) a certificate of going concern, and (ii) a certificate of commercial innovation. (b) An application under paragraph (a) shall include— (i) a business plan in respect of which the company is seeking investment, (ii) details of each of the shareholders of the company including each shareholder’s name and address and shareholdings or ownership interests, as the case may be, in linked businesses or partner businesses, and (iii) such other information and explanations as may be requested by the Revenue Commissioners for the purposes of making a determination as to whether the company complies with the conditions specified in subsection (2).
\n
(2)A company shall not make an application under subsection (1) unless the following conditions are satisfied: (a) the applicant company— (i) is incorporated in the State, another EEA state or the United Kingdom, (ii) is tax resident in the State, another EEA state or the United Kingdom and carries on, or intends to carry on, relevant trading activities from a fixed place of business in the State, (iii) holds a tax clearance certificate within the meaning of section 1095, (iv) is a company which— (I) does not control (or together with any person connected with the company does not control) another company other than a qualifying subsidiary, and (II) is not under the control of another company (or of another company and any person connected with that other company), unless such control is exercised by the National Asset Management Agency, or by a company referred to in section 616(1)(g), and no arrangements are in existence by virtue of which the applicant company would fall within clause (I) or (II) in the period of 3 years following the issue of a certificate of commercial innovation, (v) is a company— (I) which exists wholly for the purpose of carrying on relevant trading activities, or (II) whose business consists, or will consist, wholly of— (A) the holding of shares or securities of, or the making of loans to, one or more qualifying subsidiaries of the company, or (B) both the holding of such shares or securities or the making of such loans and the carrying on of relevant trading activities where relevant trading activities are carried on from a fixed place of business in the State, and where a company raises any amount through the issue of eligible shares for the purposes of raising money for relevant trading activities which are being carried on by a qualifying subsidiary or which such a qualifying subsidiary intends to carry on, the amount so raised shall be used for the purpose of acquiring eligible shares in the qualifying subsidiary and for no other purpose, (vi) is a company which is an innovative enterprise, or one or more than one qualifying subsidiary of the company is an innovative enterprise, and (vii) is— (I) a company that it is reasonable to consider intends to, and has sufficient expertise and experience, to implement the business plan, or (II) a company referred to in paragraph (v)(II) and it is reasonable to consider that the company and the qualifying subsidiary referred to in paragraph (v)(II) intend to, and have sufficient expertise and experience, to implement their respective business plan;
\n
(b) each company that is a member of the relief group of which the applicant company is a member— (i) is unlisted, and no arrangements are in existence in relation to the company becoming a listed company, (ii) is not subject to an outstanding recovery order following a previous decision of the European Commission that declared an aid illegal and incompatible with the internal market, and (iii) has all of its issued shares fully paid up; (c) (i) no company that is a member of the relief group of which the applicant company is a member has been registered, or where any company that is a member of the relief group was formed by way of acquisition or merger no company that was party to the acquisition or merger has been registered, more than 7 years prior to the date on which an application under subsection (1)(a) is made, (ii) where the acquisition or merger for the purposes of subparagraph (i) was with a member of the relief group other than a company, the date it commenced carrying on the enterprise is not more than 7 years prior to the date on which an application under subsection (1)(a) is made, and (iii) where a member of the relief group is an enterprise other than a company, the date it commenced carrying on the enterprise is not more than 7 years prior to the date on which an application under subsection (1)(a) is made; (d) the relief group of which the applicant company is a member— (i) is an SME, and (ii) is not an undertaking in difficulty.
\n
(3)(a) Subject to paragraphs (b) and (c), the Revenue Commissioners shall issue— (i) a certificate (in this Chapter referred to as a ‘certificate of going concern’) to a company where the company demonstrates to the satisfaction of the Revenue Commissioners that the relief group of which the applicant company is a member satisfies the conditions specified in subsection (2)(d), or (ii) a determination that the applicant company has not demonstrated to the satisfaction of the Revenue Commissioners that the relief group of which the applicant company is a member satisfies the condition specified in subparagraph (i) or (ii), as the case may be, of subsection (2)(d) and the reasons for the determination. (b) The Revenue Commissioners may issue to the applicant company a certificate, or renewal of a certificate, of going concern, as the case may be, having taken account of any recommendations or report which Enterprise Ireland shall make to the Revenue Commissioners following such consultation by them with Enterprise Ireland as the Revenue Commissioners consider appropriate for those purposes (including by the provision to Enterprise Ireland of such information in relation to the application as is necessary for the purposes of such consultation). (c) The Revenue Commissioners shall issue a determination and shall not issue a certificate, or a renewal of a certificate, of going concern, as the case may be, if they have reason to believe that any condition specified in subparagraphs (i) to (v) of paragraph (a), or paragraphs (b) and (c) of subsection (2) is not, or, in the case of the renewal of a certificate, is no longer, satisfied by the relief group of which the applicant company is a member, or any company that is a member of the relief group, as the case may be. (d) A person aggrieved by a determination issued under paragraph (a)(ii) or (c), as the case may be, may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that determination. (e) Where a company holds a valid certificate of commercial innovation but the certificate of going concern has expired or is about to expire, the company may apply to the Revenue Commissioners for a renewal of its certificate of going concern and the provisions of this section shall, with any necessary modifications, apply to an application for a renewal of a certificate of going concern as those provisions apply to an application for a certificate of going concern.
\n
(f) Subject to section 600P, a certificate of going concern shall be valid until the later of— (i) the earlier of— (I) the day which is 3 years from the date of registration of the first so registered company that is a member of the relief group, (II) where any company that is a member of the relief group was formed by way of acquisition or merger, the day which is 3 years from the date of registration of any company that was party to the acquisition or merger, or (III) in the case of a member, other than a company, the day which is 3 years from the date it commenced carrying on the enterprise which is required to be included in the relief group, or (ii) the earlier of— (I) the day that is the later of— (A) the last day of the accounting period, of the company to which the certificate was issued, in which that certificate was issued, or (B) 9 months from the day on which the certificate was issued to the company in accordance with subclause (A), where that day is later than the day referred to in subclause (A), or (II) where the certificate was renewed in accordance with paragraph (e), the day on which the certificate of commercial innovation referred to in that paragraph ceases to be valid.
\n
(4)(a) Subject to paragraphs (b) and (c), the Revenue Commissioners shall issue— (i) a certificate (in this Chapter referred to as a ‘certificate of commercial innovation’) to a company where the company demonstrates to the satisfaction of the Revenue Commissioners that it satisfies the conditions specified in subparagraphs (vi) and (vii) of subsection (2)(a), or (ii) a determination that the applicant company has not demonstrated to the satisfaction of the Revenue Commissioners that it satisfies the conditions specified in subparagraphs (vi) and (vii) of subsection (2)(a) and the reasons for the determination. (b) The Revenue Commissioners may issue to the applicant company a certificate of commercial innovation, having taken account of any recommendations or report which Enterprise Ireland shall make to the Revenue Commissioners following such consultation by them with Enterprise Ireland as the Revenue Commissioners consider appropriate for those purposes (including by the provision to Enterprise Ireland of such information in relation to the application as is necessary for the purposes of such consultation). (c) The Revenue Commissioners shall not issue a certificate of commercial innovation if they have reason to believe that any condition specified in paragraphs (a) to (d) of subsection (2) is not satisfied by the relief group of which the applicant company is a member, or any company that is a member of that relief group, as the case may be. (d) A person aggrieved by a determination issued under paragraph (a)(ii) may appeal the determination to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that determination. (e) Subject to section 600P, a certificate of commercial innovation shall be valid until the date that is the seventh anniversary of the earliest of— (i) the date of the registration of any company that is a member of the relief group of which the applicant company is a member, (ii) the date that is the earlier of— (I) the registration of any company that was party to the acquisition or merger, where any company that is a member of the relief group of which the applicant company is a member was formed by way of acquisition or merger, or (II) the commencement of the carrying on of an enterprise, where the acquisition or merger referred to in clause (I) was with a party other than a company, or (iii) the date of the commencement of the carrying on of an enterprise, where a member of the relief group is an enterprise other than a company.
\n
(5)(a) Subject to paragraph (c), Enterprise Ireland may consult with any person who in the opinion of Enterprise Ireland may be of assistance to it in making any recommendations or report referred to in subsection (3)(b) or (4)(b), as the case may be, or section 600P(4)(d)(ii). (b) Before disclosing information to any person under paragraph (a), Enterprise Ireland shall give notice in writing to the Revenue Commissioners of— (i) the purposes of the consultation, (ii) the intention to disclose information, (iii) the information that is intended to be disclosed, and (iv) the identity of the person whom Enterprise Ireland intends to consult. (c) (i) Notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by, or under, the Tax Acts or any other statute or otherwise, but subject to paragraph (d), the Revenue Commissioners may approve the disclosure by Enterprise Ireland of the information referred to in paragraph (b) to the person referred to in paragraph (a). (ii) Enterprise Ireland shall not disclose the information referred to in paragraph (b) to the person referred to in paragraph (a) without obtaining the approval specified in paragraph (d). (d) Before providing an approval referred to in paragraph (c), the Revenue Commissioners shall give notice in writing to the company of— (i) the purposes of the consultation, (ii) the intention to disclose information, (iii) the information that is intended to be disclosed, and (iv) the identity of the person whom Enterprise Ireland intends to consult, and shall give the company a period of 30 days after the date of the notice to show to the satisfaction of the Revenue Commissioners that the Revenue Commissioners providing the approval referred to in paragraph (c) could prejudice the company’s business. (e) Where, on the expiry of the period referred to in paragraph (d), it is not shown to the satisfaction of the Revenue Commissioners that the provision of the approval referred to in paragraph (c) could prejudice the company’s business, the Revenue Commissioners may provide that approval where the Revenue Commissioners— (i) give notice in writing to the company of the decision to provide the approval referred to in paragraph (c), and (ii) allow the company a period of 30 days after the date of the notice to appeal the decision to the Appeal Commissioners before providing the approval referred to in paragraph (c). (f) A company aggrieved by a decision made under paragraph (e) in respect of it may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that decision.
\n
(6)Certificates of qualification shall include the following information: (a) the type of certificate issued either in accordance with subsection (3)(a) or (4)(a), as the case may be; (b) the name, address and company registration number, or equivalent in the case of a company incorporated outside of the State, of the qualifying company to which the certificate was issued; (c) the date of issue of the certificate; (d) the period of validity of the certificate; (e) a unique, sequential certificate identification number assigned to the certificate by the Revenue Commissioners.
\n
(7)(a) The Revenue Commissioners shall establish and maintain a register of companies to which certificates of qualification have been issued (in this subsection referred to as the ‘register’). (b) The Revenue Commissioners shall publish the register on a website maintained by them or on their behalf. (c) The register shall contain only the information specified in subsection (6) in respect of the certificates of qualification, and the date of withdrawal in a case where the certificates of qualification have been withdrawn under section 600P.
\n
Subscription for shares 600G. (1) For the purposes of this Chapter, an individual subscribes for a share in a company if the individual subscribes for and is issued the share by the company— (a) for consideration consisting wholly of cash, (b) for bona fide commercial reasons and not as part of an arrangement that it is reasonable to consider the main purpose, or one of the main purposes, of such arrangement is to secure a tax advantage to any person, and (c) by way of a bargain at arm’s length, and references in this Chapter to ‘subscribes for’ shall be construed accordingly.
\n
(2)In this Chapter, a share subscribed for, issued to, held by, or disposed of for, an individual by a nominee shall be treated for the purposes of this Chapter as subscribed for, issued to, held by, or disposed of by, the individual where the nominee has complied with the requirements of sections 892 and 894 in respect of the share.
\n
(3)In this Chapter, references to an individual having subscribed for a share include the individual having subscribed for the share jointly with any other individual (and references to an individual holding a share or to a share being issued to an individual shall be construed accordingly).
\n
Qualifying investor