TaxGuided
All treaties

Treaty detail

United States - Ireland tax treaty

A practical treaty page built around the official treaty text, key withholding categories, permanent-establishment rules, and article-level summaries.

Signed

1997-07-28

Effective

1998-01-01

Articles seeded

6

Withholding snapshot

Dividends

Individual rate: 15% · Corporate rate: 5%

The lower 5 percent corporate rate generally depends on a direct-ownership threshold under the treaty. Certain pension and qualifying-entity cases may obtain further reductions.

Interest

Rate: 0%

The treaty article generally results in zero source-country withholding on qualifying interest, subject to beneficial-ownership and treaty-qualification analysis.

Royalties

Rate: 0%

Most royalties are generally exempt from source-country withholding under the treaty when treaty conditions are met.

Permanent establishment

Construction threshold: more than 12 months

Dependent-agent analysis remains important where a person habitually concludes contracts in the name of the enterprise under the treaty wording.

Other treaty flags

Pensions: split
Protocols: None seeded
Exchange of information: Yes
Student article: Yes
Teacher article: No

Pension treatment is article-specific. The treaty includes detailed pension and government-service articles that can alter the general result.

Seeded article summaries

Article 4

Residence

Defines treaty residence for U.S.-Ireland treaty purposes and includes tie-breaker analysis.

Article 4 is the starting point for treaty entitlement and matters for dual residents and for entities whose residence is determined under domestic law in both states.

Article 5

Permanent Establishment

Sets the business-presence threshold with a 12-month construction rule.

The Ireland treaty uses the classic 12-month construction-site threshold. Agency-related PE analysis remains relevant where a person habitually exercises authority to conclude contracts in the name of the enterprise.

Article 7

Business Profits

Generally reserves business profits to the residence state unless a permanent establishment exists in the other state.

Article 7 is the operating rule for cross-border services and exports. Because Ireland has been a common holding-company jurisdiction, this article frequently matters alongside Article 22 limitation-on-benefits analysis.

Article 10

Dividends

Caps source-country withholding on dividends at treaty rates that vary with shareholding.

Article 10 produces the 15 percent portfolio rate and the lower 5 percent direct-investment rate. The treaty interacts with U.S. limitation-on-benefits analysis, which can affect the availability of the lower rate.

Article 11

Interest

Generally removes source-country withholding on qualifying interest.

Article 11 typically eliminates source-country withholding on qualifying interest. Beneficial-ownership analysis remains important, particularly given the historical use of Irish structures as conduits.

Article 12

Royalties

Generally removes source-country withholding on qualifying royalties.

Article 12 is especially valuable for software, licensing, and IP structures because the treaty produces a zero-percent result across the major royalty categories. Limitation-on-benefits analysis still matters.

Official text

Other treaties involving these jurisdictions

Computed from the cross-reference graph. Links open the related entity on this site.

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.