Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Let me be clear that where tax is paid: it is paid by those who invest in these regimes. Those in REITs are subject and liable to a 25% withholding tax, while those in, or investing in, an IREF, are subjected to a 20% dividend withholding tax. That is where the tax is paid. It is paid when the person or the company investing in one of these funds gets the money back. It is taxed in exactly the same way in which a pension fund is taxed. The tax is incurred, therefore, when the income is redistributed to the person or company investing in the fund. The reason I believe these private capital funds have a role to play in our country is this is about ensuring that new homes are built. These funds play a role in the building of new homes, and particularly in the case of the building of new apartments.

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