Ireland publishes updated guidance on tax deductibility of Digital Services Taxes

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EY Global
9 Sep 2022
Subject Tax Alert
Categories Indirect Tax Corporate Tax
Jurisdictions Ireland

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  • Ireland has updated its list of countries to which the guidance on tax deductibility of Digital Services Taxes applies.

  • Austria, Kenya and Spain have been added to the list.

The Irish Revenue Commissioners (Irish Revenue) issued guidance on 5 August 2022 (see EY Global Tax Alert) concerning the deductibility of Digital Services Taxes (DSTs) in computing income of that trade for Irish corporation tax purposes.

Irish Revenue has updated that guidance through the addition of three additional DSTs to the list to which the guidance applies.

Where certain DSTs have been incurred wholly and exclusively for the purposes of a trade, the guidance notes that the DST should be deductible in computing income of that trade for Irish corporation tax purposes.

The complete list of countries to which the guidance now applies to is:

  1. Austria’s Digital Services Tax (updated)

  2. France’s Digital Services Tax

  3. Italy’s Digital Services Tax

  4. Kenya’s Digital Services Tax (updated)

  5. Spain’s Digital Services Tax (updated)

  6. Turkey’s Digital Services Tax

  7. United Kingdom’s Digital Services Tax

  8. India’s Equalisation Levy

This list may be updated as required in the future.

Taxpayers can make enquiries on the deductibility for Irish tax purposes of DSTs in other jurisdictions through existing processes operated by Irish Revenue’s Technical Services.

 

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Ireland), Dublin

  • Joe Bollard

  • Dan McSwiney

  • Kevin McLoughlin

  • Rory MacIver

  • Brian Kelly

  • Aoife Murray

  • Cian O’Donovan

Ernst & Young (Ireland), Financial Services, Dublin

  • Aidan Walsh

  • Petrina Smyth

Ernst & Young (Ireland), Cork

  • Frank O’Neill

  • Seamus Downey

  • Aileen Daly

Ernst & Young (Ireland), Limerick

  • Billy McMahon

  • Leanne Storan

Ernst & Young (Ireland), Waterford

  • Paul Fleming

Ernst & Young (Ireland), Galway

  • Paraic Waters

Ernst & Young LLP (United States), Irish Tax Desk, New York

  • Deirdre Fenton

  • Michéal Bruen

Ernst & Young LLP (United States), Irish Tax Desk, San Jose

  • Karl Doyle

Ernst & Young LLP (United States), FSO Irish Tax Desk, New York

  • Aine O’Connor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.