Tax

IRISH FINANCE ACT 2024 PUBLISHED

The Finance Act 2024 was enacted on 12 November 2024. In our recent Briefing: Highlights from Irish Finance Bill 2024, we highlight the key elements, including the introduction of the long-awaited participation exemption, changes to Irish Pillar Two legislation and the introduction of Pillar One Amount B transfer pricing simplification.

EU LEGISLATIVE UPDATE

The EU Directive on Faster and Safer Relief of Excess Withholding Taxes (the FASTER Directive) introduces a simplified and faster relief from withholding tax on dividends and interest from publicly traded instruments. The Proposal was formally adopted by the Council on 10 December 2024. Member States must transpose the directive by 31 December 2028, with implementation set for 1 January 2030. More details are available in our Briefing: Council of the EU reaches agreement on the FASTER Directive.

The Council also reached political agreement on the VAT in the Digital Age (ViDA) Package of measures which seeks to modernise VAT for the digital age. It will introduce a new real time system of digital reporting based on E-Invoicing, updated VAT rules for the Platform Economy and a single VAT registration for businesses selling to consumers across the EU. The new rules are proposed to be introduced on a phased basis from 2028 to 2035.