Dáil Éireann Debate, Wednesday - 26 April 2023
69. Deputy Ged Nash asked the Minister for Finance the amount of dividend withholding tax paid by REITs in 2020, 2021 and 2022, respectively; the amount of personal income tax paid on the dividends from REITs; and if he will make a statement on the matter. [19797/23]
View answer70. Deputy Ged Nash asked the Minister for Finance the amount that was paid out as dividends by REITS in 2020, 2021 and 2022, respectively. [19798/23]
View answer71. Deputy Ged Nash asked the Minister for Finance the expected additional yield in 2023 if the rate of dividend withholding tax levied on REITs was increased to 33%, or 50%, respectively; and if he will make a statement on the matter. [19799/23]
View answerI propose to take Questions Nos. 69 to 71, inclusive, together.
In relation to Dáil Question No. 69 (Ref: 19797/23) and Dáil Question No. 70 (Ref: 19798/23), the Deputy may be aware that there is now only one REIT remaining in the Irish market. As a result, I am advised by Revenue that, due to Revenue’s obligation to maintain the confidentiality of taxpayer information, the specific quantitative information requested by the Deputy cannot be provided. I would however note that REITs are required to be publicly traded entities, and as a result a large volume of information is publicly available, for example in the form of published annual reports.
In relation to Dáil Question No. 69 (Ref: 19797/23), irrespective of the confidentiality constraints arising due to the small number of entities, it would not be possible to provide details of the amount of personal income tax paid on the dividends from REITs as this would be affected by a number of factors distinct to each individual taxpayer, such as their total income from all sources and available tax bands and tax credits.
In relation to Dáil Question No. 71 (Ref: 19799/23), and again irrespective of the restrictions on the provision of information due to the small number of entities, it would not be possible to provide the information sought as the yield from changes in the rates of withholding taxes on REITs would be dependent on the level of future distributions by these entities. There is no basis available to provide an accurate estimate of these future distributions. Furthermore, investors resident in treaty-partner countries may be able to reclaim some of the REIT DWT deducted, by reference to an agreed distribution rate in the relevant bi-lateral treaty. In such cases, there would be no net Exchequer yield from an increase in the withholding tax rates as treaty relief would reduce the net tax back to the existing agreed treaty rate.
