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Tax on Irish Government Bond for a corporate investor

Chuckwalla · 2012-08-14 21:20:01

Hi, If an Irish private company was to puchase Irish government debt, what would the tax treatment be? Also, if anybody knows what the tax treatment would be if an Irish private company was to buy corporate commercial paper, please let me know. Any insights would be greatly appreciated. Thanks very much

14-08-2012 10:20pm

#1
Chuckwalla

Registered Users Posts: 25 ✭

Join Date: December 2002

Posts: 18
Hi,

If an Irish private company was to puchase Irish government debt, what would the tax treatment be?

Also, if anybody knows what the tax treatment would be if an Irish private company was to buy corporate commercial paper, please let me know.

Any insights would be greatly appreciated.

Thanks very much

Tagged:

tax government bonds

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Comments

#2 15-08-2012 9:00am

nompere

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Posts: 1647

In principle, investment income received by an Irish company, with the exception of dividends from Irish companies, is taxable at 25% It may well then be liable to the surcharge for undistributed investment income at 20%

Tax policy is largely designed to ensure that there are few benefits available when investment income is received by a corporate investor rather than a private individual.

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#3 15-08-2012 8:28pm

Chuckwalla

Registered Users Posts: 25 ✭

Join Date: December 2002

Posts: 18

Thanks for this nompere. That makes sense and I hadn't thought about the surcharge.

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