Tax

Tom Maguire: Exempting foreign dividends from tax is a welcome move

The proposal has the potential to bring some much-needed simplicity to a complex area of tax law

At the moment, Ireland operates a worldwide, or ‘tax and credit’, system on foreign dividends

Last Wednesday, May 8, was the closing date for responding with comments on the Department of Finance’s recent consultation on bringing about a participation exemption to Ireland. That’s tax-speak for exempting foreign dividends from tax.

There are also suggestions of an exemption for foreign branch profits, but that’s for another day apparently. Both exemptions would be good moves for Ireland.

“The introduction of a participation exemption will be a very important step towards simplification of ...