Finance Act 2024

Type Act

Publication 2024-11-12

State In force

Source Irish Statute Book

articles 118

(ii) in relation to an extant planning permission for residential development or a current planning application for residential development, as the case may be—

(I) particulars of the planning application as required to be entered by the local authority on the register under section 7 of the Act of 2000, and

(II) a copy of the location map provided with the planning application as required by article 22(2)(b) of the Planning and Development Regulations 2001 (S.I. No. 600 of 2001).”,

and

(iii) in subsection (4)(c), by the insertion of “or, in a case in which a submission is made under subsection (1)(d), not later than 30 June 2025,” after “31 July 2024,”,

“Exemption on submission of request for change to zoning of land included on revised map for the year 2025

653IA. (1) This subsection applies to a relevant site where—

(a) a person has made a submission under subsection (1)(d) of section 653I in respect of lands which are, or include, such relevant site,

(b) the submission referred to in paragraph (a) is acknowledged by the local authority in accordance with subsection (3A) of section 653I, and

(i) the relevant site is not the subject of an extant planning permission for residential development, and

(ii) all of the relevant site is not the subject of one or more current planning applications for residential development.

(2) Where subsection (1) applies to a relevant site, notwithstanding section 653Q, on the making of a claim by a liable person under this Part in relation to the relevant site, residential zoned land tax shall not be charged and levied in respect of that site on 1 February 2025.

(3) This subsection applies to a relevant site where—

(a) a person has made a submission under subsection (1)(d) of section 653I in respect of lands which are, or include, such relevant site,

(b) the submission referred to in paragraph (a) is acknowledged by the local authority in accordance with subsection (3A) of section 653I, and

(c) the relevant site is the subject of one or more current planning applications for residential development and the current planning application for residential development or, where there is more than one such applications, all of them taken together, are in respect of part, but not all, of a relevant site.

(4) Such part of a relevant site referred to in subsection (3) as is not the subject of one or more current planning applications for residential development referred to in that subsection shall, for the purposes of subsection (5), be regarded as the eligible part of the relevant site.

(5) Where subsection (3) applies to a relevant site, notwithstanding section 653Q, on the making of a claim by a liable person under this Part in relation to the relevant site, residential zoned land tax shall not be charged and levied in respect of the eligible part of the relevant site on 1 February 2025.

(6) A claim referred to in subsection (2) or (5) shall be made in such form and contain such particulars as the Revenue Commissioners may prescribe.”,

(d) in section 653O, by the insertion of the following subsection after subsection (3):

“(3A) Where—

(a) a site would, but for this subsection, become a relevant site on a particular date,

(b) a planning permission was granted in respect of a portion of the site prior to that date, and

that portion of the site referred to in paragraph (b) and the remainder of the site of which it forms a portion shall, from that date each be a separate relevant site for the purposes of this Part.”,

(e) in section 653T(2)(e), by the substitution of “including of any claims made in accordance with section 653IA, 653AD, 653AE, 653AF, 653AFA, 653AFB, 653AGA, 653AH, 653AHA or 653AI” for “including of any claims made in accordance with section 653AD, 653AE, 653AF, 653AFA, 653AFB, 653AH, 653AHA or 653AI”,

(f) in section 653AD, by the insertion of the following subsections after subsection (6):

“(6A) This subsection applies where—

(a) this section and section 653AGA apply in respect of a site, and

(b) the date specified in the notification under subsection (2) is before the date of the grant of planning permission or, where section 653AGA(2) applies, the date on which the relevant appeal or relevant petition, as the case may be, in respect of the planning permission is determined.

(6B) Where subsection (6A) applies, on the making of a claim by the liable person, residential zoned land tax deferred in accordance with section 653AGA in respect of a site shall not be due and payable in respect of the site, or part of the site, affected in the manner described in subsection (1).

(6C) Where only part of the site is affected in the manner described in subsection (1), the amount of residential zoned land tax deferred in accordance with section 653AGA that is not due and payable in accordance with subsection (6B), shall be determined by the formula in subsection (6), subject to the following modifications:

C shall be the amount of deferred tax which is not due and payable,

T shall be the total amount of deferred residential zoned land tax in respect of the site,

Apart shall be the area, in square metres, of the part of the site affected in the manner described in subsection (1), and

Atotal shall be the total area, in square metres, of the site.”,

(g) in section 653AF—

(i) by the substitution of the following subsection for subsection (1):

“(1) In this section and section 653AGA—

‘relevant appeal’ means an appeal to An Bord Pleanála in respect of a grant of planning permission, where the appeal has not been made by—

(a) the applicant or the owner of the land on which the development to which the planning permission relates is to be carried out, or

(b) a person connected (within the meaning of section 10) with the applicant or the owner;

‘relevant petition’ means—

(a) an application for judicial review of a decision of a local authority or An Bord Pleanála in respect of a grant of planning permission, or

(b) an appeal of a determination of a judicial review referred to in paragraph (a),

where the appeal or application, as the case may be, has not been made by—

(i) the applicant or the owner of the land on which the development to which the grant of planning permission relates is to be carried out, or

(ii) a person connected (within the meaning of section 10) with the applicant or the owner.”,

(ii) in subsection (2), by the substitution of “a relevant appeal, or a relevant petition, as the case may be,” for “a relevant appeal”,

(iii) in subsection (3)—

(I) by the substitution of “Where this section applies in respect of a relevant appeal and the relevant appeal is subsequently determined” for “Where this section applies and the relevant appeal concerned is subsequently determined”, and

(II) by the substitution of “the planning permission referred to in subsection (2) was granted” for “the relevant appeal was first made”,

(iv) in subsection (4), by the substitution of “the planning permission referred to in subsection (2) was granted” for “the relevant appeal was made”, and

(v) by the insertion of the following subsection after subsection (4):

“(5) Where this section applies in respect of a relevant petition, on the making of a claim by a liable person, any residential zoned land tax that arises in respect of a liability date between—

(a) the date on which the planning permission referred to in subsection (2) is granted, and

(b) the date on which the relevant petition is determined,

shall not be due and payable.”,

(h) by the insertion of the following section after section 653AG:

“Deferral of residential zoned land tax in respect of grant of planning permission

653AGA. (1) This section applies where—

(a) a planning permission has been granted in respect of a relevant site,

(b) that planning permission, subject to subsection (2), is not the subject of a relevant appeal or relevant petition, and

(c) no commencement notice in respect of the development of the relevant site has been lodged with the local authority in whose functional area the relevant site is situated.

(2) Where a relevant appeal or relevant petition is made in respect of a grant of planning permission and the relevant appeal or relevant petition is determined such that the grant of planning permission is upheld, a reference in this section to the date of grant of planning permission shall be read as a reference to the date on which that relevant appeal or relevant petition, as the case may be, is determined.

(3) Subject to subsections (4), (5) and (6), where this section applies, so much of any residential zoned land tax arising in respect of a liability date, in relation to a relevant site, after the date of grant of planning permission in respect of the relevant site shall, notwithstanding section 653Q(2), not be due and payable until the earlier to occur of—

(a) the expiration of the period of 12 months from the date of grant of planning permission, and

(b) the date on which there is a change in the ownership of the relevant site, or part thereof,

and residential zoned land tax so deferred shall be referred to in this section as ‘pre-development deferred residential zoned land tax’.

(4) (a) In this subsection—

‘group’ has the same meaning as it has in section 616;

‘member of a group’ has the same meaning as it has in section 616.

(b) This subsection applies where—

(i) a member of a group of companies (in this subsection referred to as the ‘transferor company’) transfers a relevant site or part of a relevant site, as the case may be, in respect of which this section applies to another member of the group (in this subsection referred to as the ‘transferee company’), and

(ii) the transferor company and the transferee company are within the charge to corporation tax.

(i) the relevant site or part of the relevant site, as the case may be, that is transferred is deemed to have been acquired by the transferee company at the time it was acquired by the transferor company,

(ii) the transferee company shall, from the date of the transfer, be deemed to be the liable person in respect of any pre development deferred residential zoned land tax relating to the relevant site or part of the relevant site, as the case may be, in respect of a liability date prior to the transfer referred to in paragraph (b), and

(iii) the transfer of the relevant site or part of the relevant site, as the case may be, to the transferee company shall not give rise to a change of ownership of the relevant site or part of the relevant site for the purposes of subsection (3)(b).

(d) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6) in relation to the relevant site, or the part of the relevant site, as the case may be, which was transferred, the transferor company and transferee company shall be jointly and severally liable for such tax.

(5) (a) This subsection applies where a commencement notice in respect of development of a relevant site in respect of which this section applies has been lodged with the local authority in whose functional area the relevant site is situated, before the expiration of the period referred to in subsection (3)(a), such that—

(i) section 653AG applies and the site ceases to be treated as a relevant site pursuant to that section, or

(ii) 653AH applies,

as appropriate.

(b) Where this subsection applies, for each liability date falling within the period from the date of grant of planning permission to the date the commencement notice concerned is lodged—

(i) the relevant amount referred to in paragraph (c) or (d), as the case may be, shall be treated as ‘deferred residential zoned land tax’ within the meaning of section 653AH for the purposes of that section, and

(ii) the relevant amount referred to in paragraph (e) shall no longer be due and payable.

(c) Where the development consists of residential development only, the relevant amount is the amount of pre-development deferred residential zoned land tax.

(d) Where the development consists of residential development and development other than residential development, the relevant amount is the amount represented by W in the formula:

W = (A (B/C)) D

where—

A is the market value of the relevant site on the valuation date applicable to each liability date,

B is, in accordance with the planning permission concerned, the portion of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings,

C is the total gross floor space for all of the development to which the planning permission relates, and

D is the rate of 3 per cent.

(e) Where the development consists of development other than residential development, in whole or in part, the relevant amount is the amount represented by Y in the formula—

Y = (Z - (A (B/C))) D

where—

Z is the market value of the relevant site on the valuation date applicable to each liability date,

A is the market value of the relevant site on the valuation date applicable to each liability date,

B is, in accordance with the planning permission concerned, the portion, if any, of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings,

C is the total gross floor space for all of the development to which the planning permission relates, and

D is the rate of 3 per cent.

(6) (a) Where—

(i) there is a change of ownership of part of a relevant site to which this section applies,

(ii) that change of ownership does not result in the entire relevant site having changed ownership, and

(iii) that change of ownership is the earlier to occur of the events referred to in paragraphs (a) and (b) of subsection (3),

(referred to in this subsection as a ‘part ownership change’) the amount of any pre-development deferred residential zoned land tax in respect of that part of the relevant site so transferred which—

(I) arises in respect of a liability date that falls in the period from the date of grant of planning permission to the date of the part ownership change, and

(II) becomes due and payable in accordance with subsection (3) on the date of the part ownership change (referred to in this subsection as the ‘part ownership change liability’),

shall be the amount represented by A in the formula—

A = (B C) D/E

where—

B is the pre-development deferred residential zoned land tax in respect of the relevant site (as that relevant site was comprised prior to any change of ownership),

C is the sum of part ownership change liabilities arising in respect of the relevant site prior to the change of ownership referred to in subparagraph (i),

D is the area, in square metres, of the part of the relevant site which is transferred pursuant to the part ownership change, and

E is the total area, in square metres, of the relevant site as it was comprised immediately prior to the change of ownership referred to in subparagraph (i).

(b) Following a part ownership change, subsection (3) shall continue to apply as if the part ownership change did not occur.

(7) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6), the liable person shall amend each return in respect of each liability date concerned and pay any tax and interest due accordingly.

(8) This section only applies if a return referred to in section 653T is delivered to the Revenue Commissioners in respect of each liability date to which this section refers, notwithstanding subsection (3).

(9) Where this section has been applied in respect of a planning permission pertaining to land representing a relevant site, it shall not apply in respect of any other planning permission pertaining to that land or any portion of that land.”,

(i) in section 653AH—

(i) in subsection (3)—

(I) by the substitution of “subsections (4A), (5), (5A) and (7)” for “subsections (5) and (7)”,

(II) by the substitution of “any residential zoned land tax, less any such tax paid pursuant to subsection (5A), arising in respect of” for “any residential zoned land tax arising in respect of”, and

(III) by the substitution of the following paragraph for paragraph (b)—

“(b) the date on which there is a change in the ownership of all or part of the relevant site—

(i) in the case of a change of ownership of all of the relevant site, where such a change occurs prior to certificates of compliance on completion having been lodged with the local authority concerned in respect of all of the relevant residential development, or

(ii) in the case of a change of ownership of part of the relevant site, where such a change occurs prior to certificates of compliance on completion having been lodged with the local authority concerned in respect of the part of the relevant residential development on that part of the relevant site,”,

(ii) by the insertion of the following subsection after subsection (4):

“(4A) (a) In this subsection—

‘group’ has the same meaning as it has in section 616;

‘member of a group’ has the same meaning as it has in section 616.

(b) This subsection applies where—

(i) a member of a group of companies (in this subsection referred to as the ‘transferor company’) transfers a relevant site or a part of a relevant site, as the case may be, in respect of which this section applies to another member of the group (in this subsection referred to as the ‘transferee company’), and

(ii) the transferor company and the transferee company are within the charge to corporation tax.

(ii) the transferee company shall, from the date of the transfer, be deemed to be the liable person in respect of any deferred residential zoned land tax relating to the relevant site or part of the relevant site, as the case may be, in respect of a liability date prior to the transfer referred to in paragraph (b), and

(d) Where deferred residential zoned land tax becomes due and payable in accordance with subsection (3), (5A) or (7)(b) in relation to the relevant site, or the part of the relevant site, as the case may be, which is transferred, the transferor company and transferee company shall be jointly and severally liable for such tax.”,

(iii) by the insertion of the following subsection after subsection (5):

“(5A) (a) Where—

(i) there is a change of ownership of part of a relevant site to which this section applies,

(ii) that change of ownership does not result in the entire relevant site having changed ownership, and

(iii) that change of ownership is the earliest to occur of the events referred to in paragraphs (a), (b) and (c) of subsection (3),

(referred to in this subsection as a ‘part ownership change’) the amount of any deferred residential zoned land tax in respect of that part of the relevant site so transferred which—

(I) arises in respect of a liability date that falls in the period from the date of the lodgement of the commencement notice to the date of the part ownership change, and

(II) becomes due and payable in accordance with subsection (3) on the date of the part ownership change (referred to in this subsection as the ‘part ownership change liability’),

shall be the amount represented by ‘A’ in the formula—

A = (B C) D/E

where—

B is the deferred residential zoned land tax in respect of the relevant site (as that relevant site was comprised prior to any change of ownership),

C is the sum of part ownership change liabilities arising in respect of the relevant site prior to the change of ownership referred to in subparagraph (i),

D is the area, in square metres, of the part of the relevant site which is transferred pursuant to the part ownership change, and

E is the total area, in square metres, of the relevant site as it was comprised immediately prior to the change of ownership referred to in subparagraph (i).

(b) Following a part ownership change, subsection (3) shall continue to apply as if the part ownership change did not occur.”,

(iv) in subsection (7A), by the substitution of “subsection (3), (5A) or (7)(b)” for “subsection (3) or (7)(b)”,

(v) by the substitution of the following subsection for subsection (8):

“(8) For the purposes of subsection (7)(b) and column (1) of the Table to this section, the percentage of completion of relevant residential development on a relevant site at the expiry of a planning permission period shall be the amount, expressed as a percentage, represented by A in the formula—

A = (B / C) 100

where—

B is the total gross floor space of the relevant residential development on the relevant site which is completed at the expiry of the planning permission period, less the total such gross floor space, if any, of the part of the relevant residential development on a part of the relevant site in respect of which there has been a part ownership change (within the meaning of subsection (5A)), and

C is, in accordance with the planning permission, the total gross floor space of the relevant residential development on the relevant site, less the total such gross floor space, if any, of the part of the relevant residential development on a part of the relevant site in respect of which there has been a part ownership change (within the meaning of subsection (5A)).”,

(vi) by the insertion of the following subsection after subsection (8):

“(8A) For the purposes of the formula in subsection (8), a reference in that subsection to a relevant site is a reference to the relevant site as it was comprised prior to the lodgement of any certificate of compliance on completion in respect of residential development on the relevant site and the consequent application of section 653O(5).”,

and

(vii) in subsection (10), by the substitution of “subsection (3)” for “subsection (2)”,

and

(j) in section 653AI—

(i) in subsection (10)—

(I) in paragraph (a), by the substitution of “make,” for “make, or”,

(II) in paragraph (b), by the substitution of “section 653Q(4), and” for “section 653Q(4).”, and

(III) by the insertion of the following paragraph after paragraph (b):

“(c) the personal representative may, during the administration period, make a claim under section 653AF(5) that the deceased person would have been entitled to make.”,

(ii) by the insertion of the following subsection after subsection (10B):

“(10C) If on the date of death of a deceased person, section 653AGA applies with respect to a relevant site to which the deceased person was the liable person prior to their death—

(a) that section shall apply to the personal representatives as if they were the liable person of the relevant site at the date of death of the deceased person, and

(b) at the completion of the administration period any residential zoned land tax deferred at that time under section 653AGA(3) shall become a charge on the land concerned under section 653Q(4).”,

(iii) in subsection (11), by the substitution of the following paragraph for paragraph (b):

“(b) at the completion of the administration period any residential zoned land tax deferred at that time under section 653AH(3), or treated, pursuant to section 653AGA(5)(b)(i), as ‘deferred residential zoned land tax’ within the meaning of section 653AH for the purposes of that section, shall become a charge on the land concerned under section 653Q(4).”,

(iv) by the substitution of the following subsection for subsection (12):

“(12) Notwithstanding subsection (9)(b), (10)(b), (10)(c), (10A)(b), (10B), (10C)(a) or (11)(a), sections 653AE(4), 653AF(4) and (5), 653AFA(4), 653AFB(6) and (7), 653AGA(3), 653AGA(5)(b)(i) and 653AH(3) shall continue to apply to a beneficiary or beneficiaries, as the case may be, of a site to which section 653AE(4), or a relevant site to which section 653AF(4) or (5), 653AFA(4), 653AFB(6) or (7), 653AGA(3), 653AGA(5)(b)(i) or 653AH(3), was applicable at the end of the administration period, as if the beneficiary or beneficiaries were the liable person of that relevant site at the date of death of the deceased person.”,

(v) by the substitution of the following subsection for subsection (13):

“(13) Any charge on the land arising under subsections (9)(b), (10)(b), (10A)(b), (10B), (10C)(b) or (11)(b) shall cease to apply where the residential zoned land tax to which the charge relates would not be payable by a beneficiary or beneficiaries, as the case may be, of the relevant site to which the charge relates, under section 653AE(5), 653AF(4)(a), 653AFA(5), 653AFB(9), 653AFB(13), 653AGA(5)(b)(ii) or 653AH(7), as the case may be, had they been the liable person with respect to that relevant site at the date of death of the deceased person.”, and

(vi) by the insertion of the following section after section 653AM:

“Functions conferred on Limerick City and County Council

653AMA. A function conferred by this Part on a local authority shall, in the case of Limerick City and County Council, be performed for it or on its behalf and in its name—

(a) in the case of the functions conferred by paragraphs (a), (b) and (c) of section 653I(4), by the Mayor of Limerick, and

(b) in all other cases, by the director general of Limerick City and County Council.”.

115. Amendment of Part 4A of Principal Act (Implementation of Council Directive (EU) 2022/2523 of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union)

115. (1) Part 4A of the Principal Act is amended—

(a) in section 111A—

(i) in subsection (1)—

(I) by the substitution of the following definition for the definition of “hybrid entity”:

“ ‘hybrid entity’ means—

(a) an entity not treated as fiscally transparent in the jurisdiction where it is located but as fiscally transparent in the jurisdiction in which its owner is located, or

(b) an entity which is located in a jurisdiction that does not have a corporate income tax and the entity—

(i) is treated as fiscally transparent in the jurisdiction where its owner is located, and

(ii) is not treated as a flow-through entity and a tax transparent entity under subsection (5)(c);”,

and

(II) by the insertion of the following definitions:

“ ‘securitisation arrangement’ means an arrangement that—

(a) is implemented for the purpose of pooling and repackaging a portfolio of assets, or exposures to assets, for investors that are not constituent entities of the MNE group which is undertaking the arrangement, in a manner that legally segregates one or more than one identified pool of assets, and

(b) seeks through contractual agreements to limit the exposure of the investors referred to in paragraph (a) to the risk of insolvency of an entity holding the legally segregated assets by controlling the ability of identified creditors of that entity, or of another entity in the arrangement, to make claims against it through legally binding documentation entered into by those creditors;

‘securitisation entity’ shall be construed in accordance with subsection (8);”,

(ii) by the insertion of the following subsection after subsection (5):

“(5A) For the purposes of applying subsection (5)(a) to a flow-through entity, a reference in that subsection to ‘owner’ means the constituent entity owner that is closest in the ownership chain to the flow-through entity that is either—

(a) not a flow-through entity, or

(b) where there is no such constituent entity-owner, a flow-through entity that is the ultimate parent entity of the MNE group or large-scale domestic group.”,

and

(iii) by the insertion of the following subsection after subsection (7):

“(8) (a) Subject to paragraph (b), in this Part, ‘securitisation entity’ means an entity which is a participant in a securitisation arrangement, that—

(i) solely carries out activities that facilitate one or more than one securitisation arrangement,

(ii) grants security over its assets in favour of its creditors, or the creditors of another securitisation entity, and

(iii) pays out all cash received from its assets to its creditors, or the creditors of another securitisation entity, on an annual or more frequent basis, other than—

(I) cash retained to meet an amount of profit required by the documentation of the securitisation arrangement for eventual distribution to equity holders or their equivalent, where the entity is not a company, or

(II) cash reasonably required under the terms of the securitisation arrangement to—

(A) make provision for future payments which are required, or will likely be required, to be made by the entity under the terms of the securitisation arrangement, or

(B) maintain or enhance the creditworthiness of the entity.

(b) An entity shall not be a securitisation entity unless any profit referred to in clause (I) of paragraph (a)(iii) for a given fiscal year is negligible relative to the revenues of that entity.”,

(b) in section 111B(1), in the definition of “OECD Pillar Two guidance”, by the substitution of the following paragraph for paragraph (b):

“(b) the document entitled OECD (2024), Tax Challenges Arising from the Digitalisation of the Economy Global Anti-Base Erosion Model Rules (Pillar Two) Examples, OECD, Paris, published by the OECD on 25 April 2024,”,

(c) in section 111C(1), by the substitution of “Subject to subsection (2) and sections 111AL, 111AAA and 111AAD” for “Subject to subsection (2) and section 111AL”,

(d) in section 111S(1), by the substitution of “the MNE group or large-scale domestic group” for “an MNE group or large-scale domestic group”,

(e) in section 111V(3)(a)(ii), by the insertion of “for a price equal to, or exceeding, the marketable price floor” after “origination year”,

(f) in section 111X—

(i) in subsection (1), by the insertion of the following definitions:

“ ‘aggregate deferred tax liability category’ means a category of deferred tax liabilities determined in relation to two or more general ledger accounts, consistent with the chart of accounts used for the purposes of determining the financial accounting net income or loss of an entity, that fall under the same balance sheet account or sub-balance sheet account;

‘FIFO methodology’ means the methodology set out in paragraphs 90.22 and 90.23 of section 1.3, paragraph 59 of the June 2024 Guidance;

‘June 2024 Guidance’ means the document entitled OECD (2024), Tax Challenges Arising from the Digitalisation of the Economy Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two), June 2024, OECD/G20 Inclusive Framework on BEPS, OECD, Paris, published by the OECD on 17 June 2024;

‘LIFO methodology’ means the methodology set out in paragraphs 90.22 and 90.24 of section 1.3, paragraph 59 of the June 2024 Guidance;

‘swinging account’ means a general ledger account for which variances in accounting and tax rules result in a net deferred tax asset or a net deferred tax liability at different points over the life of the assets or liabilities encompassed within the general ledger account;”,

(ii) by the substitution of the following subsection for subsection (8):

“(8) (a) Where a deferred tax asset which is attributable to a qualifying loss of a constituent entity has been recorded for a fiscal year at a rate lower than the minimum tax rate, provided that the constituent entity can demonstrate that the deferred tax asset is attributable to a qualifying loss, it may be recalculated at the minimum tax rate in the same fiscal year and the total deferred tax adjustment amount shall be reduced accordingly.

(b) For the purposes of determining the total deferred tax adjustment amount for a fiscal year, the reversal of a loss deferred tax asset shall first be attributable to a loss deferred tax asset which arose in the most recent fiscal year until the balance of the loss deferred tax asset is exhausted by such amounts, and then, if necessary, to a loss deferred tax asset which arose in the next most recent fiscal year until the balance of the loss deferred tax asset is exhausted by such amounts, and so on for preceding fiscal years.”,

(iii) by the substitution of the following subsection for subsection (10):

“(10) (a) Subject to paragraph (b), where a deferred tax liability is a recapture exception accrual, it shall not be recaptured in accordance with subsection (9).

(b) Where a constituent entity has a general ledger account or aggregate deferred tax liability category, as the case may be, that includes one or more deferred tax liabilities that are not a recapture exception accrual, paragraph (a) shall not apply to the general ledger account or the entire aggregate deferred tax liability category, as the case may be.”,

and

(iv) by the insertion of the following subsections after subsection (10):

“(11) For the purposes of subsection (9), subject to subsections (12) and (13), categories of deferred tax liability for an entity shall be determined—

(a) on an item-by-item basis, where deferred tax liabilities related to each single asset or liability are tracked individually,

(b) on a general ledger account basis, where deferred tax liabilities related to all the assets or liabilities encompassed in a general ledger account are grouped and tracked as a single deferred tax liability category, or

(12) For the purposes of subsections (9) and (11), where categories of deferred tax liability are determined on an aggregate deferred tax liabilities category basis as referred to in subsection (11)(c), deferred tax liabilities related to—

(a) non-amortisable intangible assets, including goodwill,

(b) amortisable intangible assets with an accounting life of more than 5 years, or

as the case may be, shall only be aggregated up to the general ledger account and cannot be aggregated with other general ledger accounts.

(13) For the purposes of subsections (9) and (11), an aggregate deferred tax liability category shall not include—

(a) any general ledger account that on a standalone basis would always generate only deferred tax assets, or

(b) deferred tax liabilities relating to swinging accounts.

(14) (a) For the purposes of subsection (9), a constituent entity may use the FIFO methodology to determine whether a deferred tax liability has reversed where—

(i) the deferred tax liability is determined in relation to a single general ledger account,

(ii) the deferred tax liability is determined in relation to an aggregate deferred tax liability category that consists solely of deferred tax liabilities determined in relation to general ledger accounts with a similar reversal trend, or

(iii) the deferred tax liability and other deferred tax liabilities are aggregated within an aggregate deferred tax liability category without a similar reversal trend but the constituent entity can demonstrate that the FIFO methodology nevertheless results in appropriate recapture of deferred tax liabilities to the extent their reversal trend extends beyond 5 years.

(b) For the purposes of paragraph (a), deferred tax liabilities related to an aggregate deferred tax liability category are considered to have a similar reversal trend if such deferred tax liabilities fully reverse within a two-year period of each other.

(15) For the purposes of subsection (9), for any aggregate deferred tax liability category for which a constituent entity chooses not to use, or for which it cannot use, the FIFO methodology, the LIFO methodology shall be used to determine whether a deferred tax liability has reversed.

(16) Unless otherwise expressly provided for under this Part, where under this Part the qualifying income or loss of a constituent entity related to an asset or a liability, as the case may be, is calculated based on a value of the asset or the liability (in this subsection referred to as the ‘GloBE carrying value’) which differs from the value of the asset or liability as recorded in the financial statements used to determine the qualifying income or loss of the constituent entity, the constituent entity shall, for the purposes of this section, determine—

(a) the deferred tax assets and liabilities relating to the asset or liability by reference to the GloBE carrying value, and

(b) the total deferred tax adjustment amount using a deferred tax expense determined—

(i) by reference to the deferred tax assets and liabilities calculated in accordance with paragraph (a), and

(ii) in accordance with the accounting standard used to calculate the deferred tax expense recorded in the financial statements used to determine the qualifying income or loss of the constituent entity.”,

(g) in section 111Z—

(i) by the substitution of the following subsection for subsection (5):

“(5) Subject to subsection (7), a constituent entity that is a hybrid entity or a reverse hybrid entity shall be allocated the amount of any covered taxes included in the financial accounts of its constituent entity-owner which relates to qualifying income of the constituent entity.”,

and

(ii) by the insertion of the following subsection after subsection (8):

“(9) (a) On the making of an election by a filing constituent entity in respect of a jurisdiction, the deferred tax expenses which otherwise would be allocated from a constituent entity located in the jurisdiction to another constituent entity under subsections (2), (4), (5) and (6), shall be excluded from the adjusted covered taxes of all constituent entities.

(b) Where the election referred to in paragraph (a) is made, the deferred tax expense with respect to passive income which would have been allocated to another entity under subsection (4) or (5) if subsection (7) were not applied is also excluded from the adjusted covered taxes of all constituent entities.

(h) in section 111AA(1), in the definition of “jurisdictional ETR”, by the insertion of “entities located in” after “the effective tax rate for”,

(i) in section 111AI—

(i) by the substitution of the following subsection for subsection (2):

“(2) Notwithstanding section 111AD(3), and subject to subsections (3) to (6), on the making of an election by a filing constituent entity in respect of a QDTT subgroup for a fiscal year, jurisdictional top-up tax in respect of the QDTT subgroup for the fiscal year concerned, other than such portion of the jurisdictional top-up tax as comprises additional top-up tax determined in accordance with section 111AF(1)(b), shall be deemed to be zero (in this section, referred to as the ‘QDTT Safe Harbour’) where the qualified domestic top-up tax implemented under the tax law of that jurisdiction is determined to have met the QDTT Safe Harbour standards under an OECD peer review process in respect of that fiscal year.”,

(ii) in subsection (4)—

(I) in paragraph (b), by the substitution of “under the laws of that jurisdiction on that flow-through entity,” for “under the laws of that jurisdiction on that flow-through entity, or”,

(II) in paragraph (c), by the substitution of “in respect of the constituent entities located in that jurisdiction, or” for “in respect of the constituent entities located in that jurisdiction.”, and

(III) by the insertion of the following paragraph after paragraph (c):

“(d) the members of the MNE group include a securitisation entity located in the jurisdiction and qualified domestic top-up tax is not charged under the laws of that jurisdiction on the securitisation entity, except where the jurisdiction applies the qualified domestic top-up tax to a securitisation entity but includes provisions to impose any qualified domestic top-up tax liability in respect of the income of a securitisation entity on another constituent entity of the MNE group that is not a securitisation entity, or on the securitisation entity itself if the domestic top-up tax liability cannot be otherwise collected.”,

(j) in section 111AJ—

(i) in subsection (1)—

(I) by the substitution of the following definition for the definition of “qualified CbC report”:

“ ‘qualified CbC report’ means, in respect of a jurisdiction, a CbC report prepared and provided using qualified financial statements for the jurisdiction;”,

and

(II) by the insertion of the following definitions:

“ ‘additional tier one capital’ means an instrument issued by a constituent entity pursuant to prudential regulatory requirements;

‘deduction without inclusion arrangement’, ‘duplicate loss arrangement’ and ‘duplicate tax recognition arrangement’ have the meaning assigned to them, respectively, in subsection (17);

‘hybrid arbitrage arrangement’ means a deduction without inclusion arrangement, a duplicate loss arrangement or a duplicate tax recognition arrangement;

‘OECD Report of 2015’ has the same meaning as in section 891H;

‘OECD CBCR Guidance’ means the document entitled OECD (2024), Guidance on the Implementation of Country-by-Country Reporting: BEPS Action 13, OECD, Paris, published by the OECD in May 2024;”,

(ii) in subsection (2), by the substitution of “subject to subsections (4), (7) to (11), (14) and (18)” for “subject to subsections (4), (7) to (11) and (14)”, and

(iii) by the insertion of the following subsections after subsection (14):

“(15) Where purchase price accounting adjustments have been included in the financial accounts of a constituent entity that are used in the preparation of the consolidated financial statements of the ultimate parent entity before any consolidation adjustments eliminating intra group transactions, or the separate financial statements of the constituent entity, those financial accounts or separate financial statements shall not be considered qualified financial statements unless—

(a) the MNE group of which the constituent entity is a member has not filed a CbC report for a fiscal year beginning after 31 December 2022 that was based on financial information that excluded the purchase price accounting adjustments, except where the constituent entity was required by law or regulation to change its financial information to include purchase price accounting adjustments, and

(b) any reduction to the constituent entity’s income attributable to an impairment of goodwill related to transactions entered into after 30 November 2021 has been added back to the profit or loss before income tax—

(i) for the purposes of applying the routine profits test, and

(ii) for the purposes of calculating the simplified ETR in accordance with subsection (3), but only if the financial accounts do not also have a reversal of deferred tax liability, or recognition or increase of a deferred tax asset, in respect of the impairment of goodwill.

(16) For the purpose of subsection (3)—

(a) the income tax expense in respect of a permanent establishment’s income in the jurisdiction in which the permanent establishment is located must be allocated solely to that jurisdiction and shall not be included in the calculation of the simplified ETR for the main entity’s jurisdiction, and

(b) taxes paid under a controlled foreign company tax regime or paid by a main entity in relation to the qualifying income or loss of a permanent establishment and that are included in qualified financial statements of the constituent entity-owner or main entity, as the case may be, shall not be allocated for the purposes of determining the simplified ETR for the jurisdiction of the constituent entity-owner or main entity.

(17) (a) A deduction without inclusion arrangement is an arrangement under which one constituent entity (in this paragraph referred to as the ‘first-mentioned constituent entity’) directly or indirectly provides credit or otherwise makes an investment in another constituent entity that results in an expense or loss in the financial statements of a constituent entity to the extent that—

(i) there is no commensurate increase in the revenue or gain in the financial statements of the first-mentioned constituent entity, or

(ii) the first-mentioned constituent entity is not reasonably expected over the life of the arrangement to have a commensurate increase in its taxable income,

but an arrangement will not be a deduction without inclusion arrangement to the extent that the expense or loss is solely with respect to additional tier one capital.

(b) (i) A duplicate loss arrangement is an arrangement that results in an expense or loss being included in the financial statements of a constituent entity to the extent that—

(I) the expense or loss is also being included as an expense or loss in the financial statements of another constituent entity, or

(II) the arrangement gives rise to an amount that is deductible for the purposes of determining the taxable income of another constituent entity in another jurisdiction.

(ii) An arrangement shall not be a duplicate loss arrangement under subparagraph (i)(I) to the extent that the amount of the expense or loss is offset against revenue or income which is included in the financial statements of both constituent entities.

(iii) An arrangement shall not be a duplicate loss arrangement under subparagraph (i)(II) to the extent that the amount of the expense or loss is offset against revenue or income which is included in both—

(I) the financial statements of the constituent entity that is including the expense or loss in its financial statements, and

(II) the taxable income of the constituent entity availing of the deduction against taxable income for the expense or loss.

(c) (i) A duplicate tax recognition arrangement is an arrangement that results in more than one constituent entity including part or all of the same income tax expense in its—

(I) adjusted covered taxes, or

(II) simplified ETR for the purposes of applying the transitional CbCR safe harbour,

unless such arrangement also results in the income subject to the tax being included in the financial statements of each such constituent entity.

(ii) An arrangement shall not be a duplicate tax recognition arrangement if it arises solely because the simplified ETR of a constituent entity (in this subparagraph referred to as ‘the first mentioned constituent entity’) does not require adjustments for income tax expenses which would be allocated to another constituent entity in determining the first-mentioned constituent entity’s adjusted covered taxes.

(d) Notwithstanding section 111A, a reference to constituent entity in this subsection and subsection (18) shall include—

(i) a reference to any entity treated as a constituent entity for the purposes of this Part,

(ii) a joint venture or joint venture affiliate, and

(iii) any entity with qualified financial statements that has been taken into account for the purposes of the transitional CbCR safe harbour,

regardless of whether such entities are located in the same jurisdiction.

(e) In this subsection, ‘financial statements of a constituent entity’ means the financial statements used to calculate that constituent entity’s qualifying income or loss or the qualifying financial statements where that constituent entity is subject to the transitional CbCR safe harbour.

(f) For the purposes of this subsection, a constituent entity (in this paragraph referred to as ‘the first-mentioned constituent entity’) shall not be considered to have a commensurate increase in its taxable income to the extent that—

(i) the amount included in taxable income of the first-mentioned constituent entity is offset by a tax attribute with respect to which a valuation adjustment or accounting recognition adjustment has been made or would have been made if the determination whether to make such a valuation adjustment or accounting recognition adjustment were made without regard to the ability of the first-mentioned constituent entity to use the tax attribute with respect to any hybrid arbitrage arrangement entered into after 15 December 2022, or

(ii) the payment that gives rise to the expense or loss also gives rise to a taxable deduction or loss of a constituent entity that is located in the same jurisdiction as the first-mentioned constituent entity without being included as an expense or loss in determining the profit or loss before income tax for that jurisdiction, including as a result of being an expense or loss in the financial statements of a flow-through entity which is owned by a constituent entity located in the jurisdiction of the first mentioned constituent entity.

(g) For the purposes of this subsection, an expense or loss shall not be considered to be included in the financial statements of a tax transparent entity to the extent that the expense or loss is included in the financial statements of its constituent-entity owners.

(18) (a) For the purposes of determining whether the transitional CbCR safe harbour applies to an MNE group in respect of a jurisdiction for a fiscal year, in respect of any hybrid arbitrage arrangement entered into after 15 December 2022—

(i) any expense or loss arising as a result of a deduction without inclusion arrangement or duplicate loss arrangement shall be excluded from the MNE group’s profit or loss before income tax in respect of the jurisdiction, and

(ii) any income tax expense arising as a result of a duplicate tax recognition arrangement shall be excluded from the MNE group’s income tax expense in respect of the jurisdiction.

(b) For the purposes of this subsection, a constituent entity shall be considered to have entered into a hybrid arbitrage arrangement after 15 December 2022 if after that date—

(i) the arrangement is amended or transferred,

(ii) the performance of any rights or obligations under the arrangement differs from the performance prior to 15 December 2022 including where payments are reduced or ceased with the effect of increasing the balance of a liability, or

(iii) there is a change in the accounting treatment with respect to the arrangement.

(c) Where a duplicate loss arrangement arises under paragraph (b)(i)(I) of subsection (17), and all constituent entities that include the relevant expense or loss in their financial statements are located in the same jurisdiction, then an adjustment shall not be made under subparagraph (a)(i) with respect to the expense or loss in the financial statements of one of the constituent entities.

(19) An MNE group or large-scale domestic group that is not required to file a CbC report may apply the provisions of this section for a fiscal year where the top-up tax information return that is filed by the group for that fiscal year is completed using the data from qualified financial statements that would have been reported as total revenue and profit or loss before income tax in a qualified CbC report if the MNE group or large-scale domestic group were required to file a CbC report in accordance with the country-by-country reporting requirements in the jurisdiction where the ultimate parent entity is located, or if that jurisdiction does not have such requirements, the amounts that would have been reported in accordance with the OECD Report of 2015 and the OECD CBCR Guidance.”,

(k) in Chapter 5, by the insertion of the following section after section 111AK:

“Simplified calculations safe harbour

111AKA. (1) In this section—

‘CbC report’ has the same meaning as in section 111AJ(1);

‘non-material constituent entity’ means a constituent entity, including its permanent establishments, that is a member of an MNE group or large-scale domestic group, as the case may be, and that is not consolidated on a line-by-line basis in the ultimate parent entity’s consolidated financial statements solely on size or materiality grounds, provided that—

(a) the consolidated financial statements are consolidated financial statements to which paragraph (a) or (c), as the case may be, of the definition of that term in section 111A(1) applies,

(b) the consolidated financial statements are audited by an external independent auditor and that auditor’s opinion on the consolidated financial statements does not contain any objections or qualifications in relation to the entity not being consolidated on a line-by-line basis, and

(c) in the case of an entity with a total revenue, as determined in accordance with the relevant CbC regulations in respect of the fiscal year, that exceeds €50,000,000, its financial accounts, that are used to complete the CbC report for the group of which the entity is a member, are prepared in accordance with an acceptable financial accounting standard or an authorised financial accounting standard;

‘NMCE’ means non-material constituent entity;

‘NMCE simplified calculations’ means the simplified income calculation, the simplified revenue calculation and the simplified tax calculation;

‘OECD Report of 2015’ and ‘OECD CBCR Guidance’ have the meaning assigned to them, respectively, in section 111AJ(1);

‘relevant CbC regulations’ means the Country-by-Country Reporting regulations of the jurisdiction in which the ultimate parent entity of an MNE group is located, or where the surrogate parent entity is located if a CbC report is not filed by the MNE group in the jurisdiction of the ultimate parent entity, but where an MNE group is not required to file a CbC report in any jurisdiction, it shall mean the OECD Report of 2015 and the OECD CBCR Guidance;

‘simplified income calculation’ means the qualifying income or loss of an NMCE is equal to the total revenue as determined in accordance with the relevant CbC regulations in respect of the fiscal year;

‘simplified revenue calculation’ means the qualifying revenue of an NMCE is equal to the total revenue as determined in accordance with the relevant CbC regulations in respect of the fiscal year;

‘simplified tax calculation’ means the adjusted covered taxes of an NMCE is equal to its current year income tax accrued as determined in accordance with the relevant CbC regulations in respect of the fiscal year;

‘surrogate parent entity’ means a constituent entity appointed by an MNE group as a sole substitute for the ultimate parent entity, to file a CbC report on behalf of the MNE group.

(2) Subject to subsection (3), notwithstanding section 111AD(3), at the election of the filing constituent entity, the jurisdictional top-up tax for a jurisdiction for a fiscal year, other than additional top-up tax for a jurisdiction for a fiscal year determined in accordance with section 111AF, shall be deemed to be zero where the MNE group or large scale domestic group, as the case may be, meet the requirements set out in subsection (4), (5) or (6).

(3) An election shall not be made in respect of a jurisdiction under subsection (2) where there is no NMCE of the MNE group or large-scale domestic group, as the case may be, located in the jurisdiction for the fiscal year.

(4) The requirements of this subsection shall be met where there is no excess profit determined for a jurisdiction for a fiscal year in accordance with section 111AD(4).

(5) The requirements of this subsection shall be met where—

(a) the average qualifying revenue of all constituent entities of an MNE group or large-scale domestic group, as the case may be, located in a jurisdiction is less than €10,000,000, and

(b) the average qualifying income or loss of all constituent entities of an MNE group or large-scale domestic group, as the case may be, in that jurisdiction is a loss or is less than €1,000,000,

where the average qualifying revenue and average qualifying income or loss of all constituent entities of an MNE group or large-scale domestic group are determined in accordance with section 111AG.

(6) The requirements of this subsection shall be met where the effective tax rate of a jurisdiction for a fiscal year calculated in accordance with section 111AC is equal to or greater than the minimum tax rate.

(7) Notwithstanding sections 111O(1), 111U and 111AG(3), for the purposes of this section, a filing constituent entity may make an election to determine the qualifying income or loss, qualifying revenue and adjusted covered taxes of an NMCE for a fiscal year using the NMCE simplified calculations.

(8) (a) Where a main entity is not an NMCE then none of its permanent establishments shall be considered to be an NMCE but where a main entity is an NMCE then all of its permanent establishments shall be considered to be NMCEs.

(b) In the case of a permanent establishment that is an NMCE, the amount of the NMCE simplified calculations shall be determined under the relevant CbC regulations with respect to such permanent establishment.

(9) All relevant information concerning the application of the simplified calculations safe harbour shall be included in the top-up tax information return for the fiscal year in accordance with section 111AAI.

(10) The elections referred to in subsections (2) and (7) shall be made in accordance with section 111AAAD.”,

(l) in section 111AS(7)(a)(ii), by the substitution of “transfers substantially all of its assets to a person” for “substantially all of its assets are transferred to a person”,

(m) in section 111AT(4)(b), by the substitution of “top-up tax” for “effective tax rate”,

(n) in section 111AW—

(i) in subsection (2), by the insertion of the following paragraph after paragraph (d):

“(e) For the purposes of determining the total deferred tax adjustment amount, as set out in section 111X, the reversal of a loss deferred tax asset, as set out in section 111X, shall first be attributable to a loss deferred tax asset which arose in the most recent fiscal year until the balance of the loss deferred tax asset is exhausted by such amounts, and then, if necessary, to a loss deferred tax asset which arose in the next most recent fiscal year until the balance of the loss deferred tax asset is exhausted by such amounts, and so on for preceding fiscal years.”,

and

(ii) in subsection (3), by the substitution of “effective tax rate” for “effective rate”,

(o) in section 111AY(1)(b)—

(i) in subparagraph (i), by the substitution of “section 111G(1)” for “section 111F(1)”, and

(ii) in subparagraph (ii), by the substitution of “section 111G(2)” for “section 111F(2)”,

(p) in section 111AAA, by the designation of that section as subsection (1) and by the insertion of the following subsection after subsection (1):

“(2) Chapter 10 shall apply for the purpose of administering the charge to domestic top-up tax of a qualifying entity.”,

(q) in section 111AAB(1)(c)—

(i) in subparagraph (i), by the deletion of “and”,

(ii) in subparagraph (ii), by the substitution of “by virtue of section 111C(2), and” for “by virtue of section 111C(2),” and

(iii) by the insertion of the following subparagraph after subparagraph (ii):

“(iii) is not an investment undertaking (within the meaning of section 246),”,

(r) in section 111AAC, by the insertion of the following subsection after subsection (3):

“(4) (a) Subject to paragraph (b), where a securitisation entity is a member of an MNE group or large-scale domestic group, then no domestic top-up tax shall be charged on that securitisation entity for a fiscal year and for the purposes of determining the domestic top-up tax of all the other qualifying entities, excluding securitisation entities, of that MNE group or large-scale domestic group for the fiscal year, section 111AD(5) shall apply as if the sum, if any, of the qualifying income of all the qualifying entities of that MNE group or large-scale domestic group for a fiscal year located in the State excluded the qualifying income, if any, of the securitisation entity.

(b) Paragraph (a) shall not apply where there are no entities of an MNE group or large-scale domestic group located in the State in a fiscal year other than a securitisation entity.”,

(s) in section 111AAD—

(i) in subsection (1), by the substitution of “subsections (2) to (8)” for “subsections (2) to (6)”,

(ii) in subsection (2), by the substitution of the following paragraph for paragraph (c):

“(c) sections 111T(1)(b), 111AI and 111AS were omitted,”,

(iii) in subsection (2), by the substitution of the following paragraph for paragraph (f):

“(f) subject to subsection (8), subsections (4), (5) and (7) of section 111Z did not apply,”,

(iv) by the insertion of the following subsection after subsection (2):

“(2A) Where the financial accounting net income or loss for a fiscal year is determined in accordance with a local accounting standard in accordance with section 111O (as modified by subsection (2)(e)), then, for the purposes of subsection (1), this Part shall have effect for domestic purposes as if—

(a) the reference in section 111P(6)(a) to consolidated financial statements were to financial statements prepared in accordance with the local accounting standard,

(b) the reference in section 111AE(5) to consolidated financial statements of the ultimate parent entity were to financial statements prepared in accordance with the local accounting standard, and

(c) the reference in section 111AN(3) to consolidated financial statements of its ultimate parent entity were to financial statements prepared in accordance with the local accounting standard.”,

(v) in subsection (4)(a)(ii), by the insertion of “, other than a partially-owned parent entity,” after “are held by a parent entity”, and

(vi) by the insertion of the following subsection after subsection (7):

“(8) Notwithstanding subsection (2)(f), for the purposes of this section, a qualifying entity that is a hybrid entity or reverse hybrid entity shall be allocated the amount of any covered taxes included in the financial accounts of its constituent entity-owner where the taxes—

(a) are allocated to the qualifying entity under section 111Z(5),

(b) are imposed by the jurisdiction in which the constituent entity is located, and

(t) in section 111AAF—

(i) in subsection (1), by the substitution of the following definition for the definition of “specified return date”:

“ ‘specified return date’ in respect of a fiscal year, means, subject to subsection (5)—

(a) the last day of the period of 15 months beginning on the day immediately following the end of the fiscal year, or

(b) where the fiscal year is a transition year, the last day of the period of 18 months beginning on the day immediately following the end of the fiscal year;”,

and

(ii) by the insertion of the following subsection after subsection (4):

“(5) For the purpose of the definition of ‘specified return date’ in subsection (1), where the specified return date of an entity or group would otherwise arise before 30 June 2026, the specified return date of that entity or group shall instead be 30 June 2026.”,

(u) in section 111AAH, by the substitution of the following subsection for subsection (1):

“(1) (a) An entity that is subject to IIR top-up tax for a fiscal year (in this Chapter referred to as a ‘relevant parent entity’), shall give notice to the Revenue Commissioners, in the form and manner specified by the Revenue Commissioners, that it is such an entity, not later than—

(i) the last day of the period of 12 months starting on the day immediately following the last day of the first fiscal year during which it is a relevant parent entity, immediately following a fiscal year for which it was not a relevant parent entity (in this paragraph referred to as the ‘IIR registration date’), or

(ii) 31 December 2025, where the IIR registration date is earlier than 31 December 2025.

(b) An entity that is subject to UTPR top-up tax for a fiscal year (in this Chapter referred to as a ‘relevant UTPR entity’) shall give notice to the Revenue Commissioners in the form and manner specified by the Revenue Commissioners, that it is such an entity, not later than—

(i) the last day of the period of 12 months starting on the day immediately following the last day of the first fiscal year during which it is a relevant UTPR entity, immediately following a fiscal year for which it was not a relevant UTPR entity (in this paragraph referred to as the ‘UTPR registration date’), or

(ii) 31 December 2025, where the UTPR registration date is earlier than 31 December 2025.

(c) A qualifying entity shall give notice to the Revenue Commissioners, in the form and manner specified by the Revenue Commissioners, that it is such an entity, not later than—

(i) the last day of the period of 12 months starting on the day immediately following the last day of the first fiscal year that it is a qualifying entity, immediately following a fiscal year for which it was not a qualifying entity (in this paragraph referred to as the ‘QDTT registration date’), or

(ii) 31 December 2025, where the QDTT registration date is earlier than 31 December 2025.”,

(v) in section 111AAZ(5), by the substitution of “entity” for “constituent entity”, and

(w) in section 111AAAD—

(i) by the substitution of the following subsection for subsection (5):

“(5) The election referred to in section 111W(2) shall not be withdrawn with respect to an ownership interest, other than a qualified ownership interest as referred to in that section, where a loss in respect of that ownership interest was included in the calculation of the qualifying income or loss of the constituent entity in the five-year period beginning on the first day of the fiscal year in respect of which the election was made.”,

(ii) by the insertion of the following subsection after subsection (8):

“(8A) The election referred to in section 111AKA(7) shall be made in respect of each entity to which it relates.”,

(iii) in subsection (10), by the substitution of “subsection (7), (8), (8A) or (9)” for “subsection (7), (8) or (9)”,

(iv) in column (1) of the Table, by the insertion of “Section 111Z(9)” after “Section 111W(2)”, and

(v) in column (2) of the Table, by the insertion of “Section 111AKA(2) and (7)” after “Section 111AG(1)”.

(2) Subject to subsection (3), subsection (1) shall apply in respect of a fiscal year (within the meaning of section 111A of the Principal Act) or an accounting period, as the case may be, commencing on or after 31 December 2024.

(3) The following provisions of subsection (1) shall apply in respect of a fiscal year (within the meaning of section 111A of the Principal Act) or an accounting period, as the case may be, commencing on or after 31 December 2023:

(a) subparagraphs (i)(II) and (iii) of paragraph (a);

(b) subparagraph (ii) of paragraph (g);

(d) subparagraphs (ii), (iii), (iv) and (v) of paragraph (w).

116. Miscellaneous technical amendments in relation to tax

116. The enactments specified in Schedule 2—

(a) are amended to the extent and in the manner specified in paragraphs 1 to 3 of that Schedule, and

(b) apply and come into operation in accordance with paragraph 4 of that Schedule.

117. Care and management of taxes and duties

117. All taxes and duties imposed by this Act are placed under the care and management of the Revenue Commissioners.

118. Short title, construction and commencement

118. (1) This Act may be cited as the Finance Act 2024.

(2) Part 1 shall be construed together with—

(a) in so far as it relates to income tax, the Income Tax Acts,

(b) in so far as it relates to universal social charge, Part 18D of the Principal Act,

(d) in so far as it relates to capital gains tax, the Capital Gains Tax Acts.

(3) Part 2, in so far as it relates to duties of excise, shall be construed together with the statutes which relate to those duties and to the management of those duties.

(4) Part 3 shall be construed together with the Value-Added Tax Acts.

(5) Part 4 shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act.

(6) Part 5 shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act.

(7) Part 6 in so far as it relates to—

(a) income tax, shall be construed together with the Income Tax Acts,

(b) residential zoned land tax, shall be construed together with Part 22A of the Principal Act,

(d) corporation tax, shall be construed together with the Corporation Tax Acts,

(e) capital gains tax, shall be construed together with the Capital Gains Tax Acts,

(f) duties of excise, shall be construed together with the statutes which relate to duties of excise and the management of those duties,

(g) value-added tax, shall be construed together with the Value-Added Tax Acts,

(h) stamp duty, shall be construed together with the Stamp Duties Consolidation Act 1999 and the enactments amending or extending that Act,

(i) gift tax or inheritance tax, shall be construed together with the Capital Acquisitions Tax Consolidation Act 2003 and the enactments amending or extending that Act, and

(j) the temporary wage subsidy or the wage subsidy payment provided for by Part 7 of the next-mentioned Act, shall be construed together with Part 7 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and the enactments amending or extending that Act.

(8) Except where otherwise expressly provided for in Part 1, that Part shall come into operation on 1 January 2025.

(9) Except where otherwise expressly provided for, where a provision of this Act is to come into operation on the making of an order by the Minister for Finance, that provision shall come into operation on such day or days as the Minister for Finance shall appoint either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

SCHEDULE 1 E-Liquid Products Tax

Section 58

Product (1)	Rate of Tax (2)
e-liquid product	€500.00 per litre

SCHEDULE 2 Miscellaneous Technical Amendments in Relation to Tax

Section 116

The Taxes Consolidation Act 1997 is amended—

(a) in section 860(1), by the substitution of “A Peace Commissioner” for “Subject to subsection (2), a Peace Commissioner”,

(b) in section 959C(1), by the substitution of “other than a self assessment” for “other that a self assessment”,

(c) in section 959V(2A), by the substitution of “whether paragraph (a), (b) or (c) applies” for “which of paragraphs (a), (b) and (c) applies”, and

(d) in section 959AT(2)(b)(iii), by the substitution of “by the claimant company for the accounting period,” for “by the claimant company for the accounting period, or”.

The Finance Act 1992 is amended—

(a) in section 130—

(i) in the definition of “ambulance”, by the substitution of “point 5.3 of Annex I of Regulation 2018/858” for “paragraph 5.3 of Annex II to Directive 2007/46/EC”,

(ii) in the definition of “category M1 vehicle”, “category M2 vehicle”, “category M3 vehicle”, “category N1 vehicle”, “category N2 vehicle” and “category N3 vehicle”, by the substitution of “Article 4 of Regulation 2018/858” for “Annex II of Directive 2007/46/EC”, and

(iii) in the definition of “motor caravan”, by the substitution of “point 5.1 of Annex I to Regulation 2018/858” for “paragraph 5.1 of Annex II to Directive 2007/46/EC”, and

(b) in section 132(3)(a)(i)(II)(B), by the substitution of “€820” for “€740”.

Schedule 1 to the Stamp Duties Consolidation Act 1999 is amended in the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”, by the substitution of the following paragraph for paragraph (5)—

“(5) Where paragraph (4) applies in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos of property that is land—

(a) the instrument is executed on or after 1 January 2015 and before 1 January 2029,

(b) the individual to whom the property is being conveyed or transferred is an individual—

(i) who, from the date of conveyance or transfer and for a period of not less than 6 years thereafter—

(I) farms the land, or

(II) leases it for a period of not less than 6 years to an individual who farms the land,

and

(ii) who, in a case where subclause (I) applies—

(I) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a trained farmer qualification (within the meaning given by section 654A of the Taxes Consolidation Act 1997) or a qualification set out in Schedule 2 or 2A, or

(II) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(i) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a trained farmer qualification (within the meaning given by section 654A of the Taxes Consolidation Act 1997) or a qualification set out in Schedule 2 or 2A, or

(ii) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(d) the land is farmed on a commercial basis and with a view to the realisation of profits from that land, and

(e) the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest in the property, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is, as a lineal descendant, parent, grandparent, step parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister, or is, as respects the person or each of the persons immediately theretofore entitled, his or her civil partner, the civil partner of either of his or her parents or a lineal descendant of his or her civil partner.

1 per cent of the consideration which is attributable to property which is not residential property but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.

”.

(a) Subject to subparagraph (b), this Schedule shall have effect on and from the date of the passing of this Act.

(b) Subparagraph (b) of paragraph 2 is deemed to have come into operation on and from 1 January 2022.

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