Changes to laws governing real estate investment trusts in Ireland include increasing the dividend withholding tax on proceeds from property disposals to 25% from 20% previously, the Irish finance ministry said in responses to questions after its Oct. 8 budget announcement.
- A REIT must now exist for at least 15 years for profits on so-called “deemed disposals” to be exempt from corporation tax, the ministry said.
- An expense will only be deductible for tax purposes if it is incurred wholly and exclusively for the purpose of the REIT’s business.
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