Tax Clearance is required for various purposes, such as renewal of a variety of licences and permits, public sector contracts, grants, subsidy payments and Government supports. The tax clearance procedures in relation to the payment of grants, subsidies and similar type payments by Government Departments and other public sector bodies are set out in Circular 44/2006.
The following payments are excluded from the scope of the procedures:
(i) Payments by one public sector body to another;
(ii) Social welfare-type payments;
(iii) Payments to registered Charities;
(iv) Payments made under the Criminal Injuries Compensation Tribunal;
(v) Payments made under the Hepatitis C and HIV Compensation Tribunal;
(vi) Payments made under the Residential Institutions Redress Board; and
(vii) Payments to individuals or bodies, which do not exceed €10,000 in a 12 month period, or €650 in the case of payments which finance construction operations, as defined in section 530 of the Taxes Consolidation Act 1997.
The procedures in the circular apply to all applications received after 1 January 2007. This was the most recent time that the threshold amounts for exclusion under (vii) above were amended.
In the case of relevant payments totalling €10,000 or more in a 12 month period, the applicant is required, for each payment, to produce either a valid tax clearance or C2 certificate as issued by Revenue. However, it should be noted that special arrangements apply where payments which finance construction operations, as defined in section 530 of the Taxes Consolidation Act 1997, exceed €650.Further details on the current tax clearance procedures in respect of grants, subsidies and similar type payments is available at circulars.gov.ie/pdf/circular/finance/2006/44.pdf.
There are currently no plans to amend the threshold amounts over which the tax clearance procedures apply to relevant payments.
