Under Section 246 of the Irish tax legislation, the interest is deemed to be “yearly interest” for Irish tax purposes and 20% withholding tax applies. Where interest arises on a balance with no specified term and where the arrangement can run for a period of a year or more, the interest paid is classified as yearly interest under the Irish tax legislation.
Additional Information
**This document is for information purposes only and does not constitute tax, regulatory or any other kind of advice. If you are unsure of your tax obligations please consult the Irish Revenue Commissioners, your local tax authority or an appropriate tax professional.