Ireland provides guidance on tax deductibility of Digital Services Taxes

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EY Global
5 Aug 2022
Subject Tax Alert
Categories Corporate Tax Indirect Tax
Jurisdictions Ireland Global

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On 5 August 2022, the Irish Revenue Commissioners (Irish Revenue) published guidance confirming that certain Digital Services Taxes (DSTs) incurred wholly and exclusively for the purposes of a trade are deductible in computing income of that trade for Irish corporation tax purposes.

The guidance applies to:

  1. France’s Digital Services Tax

  2. Italy’s Digital Services Tax

  3. Turkey’s Digital Services Tax

  4. United Kingdom’s Digital Services Tax

  5. India’s Equalization 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.