Contributed By Walkers
A person who is neither resident nor ordinarily resident in Ireland should not be subject to Irish tax on capital gains on disposals of listed or unlisted debt securities, unless the person is a company and is carrying on a trade in Ireland through a branch or agency in respect of which the securities are used or held.
For example, if a non-resident company is carrying on a trade in Ireland through a branch or agency dealing in debt securities, corporation tax at the rate of 12.5% would apply on any profit arising from the trade. The company in these circumstances would be required to register with the Revenue Commissioners of Ireland and self-assess through the Revenue on-line service (ROS).
A charge to capital gains tax may also arise for non-Irish residents in respect of the disposal of certain specified Irish assets (ie, land and buildings in Ireland, exploration rights located in Ireland, goodwill of a trade carried on in Ireland and shares of a company that derives its value or the greater part of its value from land, buildings or exploration rights located in Ireland). Land, or an interest in land, for these purposes includes a loan secured on Irish land, eg, a mortgage.