05 August 2022

Ireland provides guidance on tax deductibility of Digital Services Taxes

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:

France’s Digital Services Tax

Italy’s Digital Services Tax

Turkey’s Digital Services Tax

United Kingdom’s Digital Services Tax

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.

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

Ernst & Young (Ireland), Dublin

Joe Bollard | joe.bollard@ie.ey.com

Dan McSwiney | dan.mcswiney@ie.ey.com

Kevin McLoughlin | kevin.mcloughlin@ie.ey.com

Rory MacIver | rory.maciver@ie.ey.com

Brian Kelly | brian.kelly@ie.ey.com

Cian O’Donovan | cian.odonovan@ie.ey.com

Ernst & Young (Ireland), Financial Services, Dublin

Aidan Walsh | aidan.walsh@ie.ey.com

Petrina Smyth | petrina.smyth@ie.ey.com

Ernst & Young (Ireland), Cork

Frank O’Neill | frank.oneill@ie.ey.com

Seamus Downey | seamus.downey@ie.ey.com

Aileen Daly | aileen.daly@ie.ey.com

Ernst & Young (Ireland), Limerick

Billy McMahon | billy.mcmahon@ie.ey.com

Leanne Storan | leanne.storan@ie.ey.com

Ernst & Young (Ireland), Waterford

Ernst & Young (Ireland), Galway

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

Deirdre Fenton | deirdre.fenton1@ey.com

Michéal Bruen | micheal.bruen1@ey.com

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

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

Document ID: 2022-5745