Pearse Doherty (Donegal, Sinn Fein)
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67. To ask the Minister for Finance the net total dividend withholding tax collected in respect of REIT dividends paid to non-resident investors and other relevant parties in each of the years 2013 to 2016, and to date in 2017, in tabular form; and if he will make a statement on the matter. [40140/17]

Joan Burton (Dublin West, Labour)
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72. To ask the Minister for Finance the amount paid out by REITs here in each year since their introduction; the amount of tax collected on those payments; his plans to review the operation of REITs; and if he will make a statement on the matter. [40259/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 67 and 72 together.

The Finance Act 2013 inserted Part 25A into the Taxes Consolidation Act 1997 which introduced the tax regime for the operation of Real Estate Investment Trusts (REIT) in Ireland. 

Part 25A provides, inter alia, that a REIT must distribute to its shareholders at least 85% of property income by way of property income dividends. In order to ensure that tax from foreign REIT investors is retained in the State, the REIT tax legislation specifically provides that Dividend Withholding Tax (DWT) would apply to REIT dividends at the standard rate of income tax of 20%.

Non-resident investors who might otherwise be exempt from DWT do not have an exemption in respect of dividends paid by a REIT. However, non-resident REIT investors from countries with which Ireland has a tax treaty may be able to reclaim some part of this DWT if the relevant tax treaty allows for this.  The taxation of dividends varies from treaty to treaty, but commonly a source state would retain the right to a withholding tax of up 15% on dividends paid from that state.

I am advised by Revenue that dividends amounting to €23.9m in 2015, €54.7m in 2016 and €35.6m in 2017 (to August) were paid out by REITs. No dividends were paid out prior to 2015. DWT amounting to €4.1m in 2015, €8.5m in 2016 and €5.3m in 2017 (to August) was collected in respect of dividends paid by REITs. These figures include DWT relating to both resident and non-resident investors. Due to the way in which investor details are returned it is not possible to separately identify DWT collected from non-resident investors only. However, DWT amounting to €68,000 in 2015, €235,600 in 2016 and €563,700 in 2017 (to August) was refunded to non-resident investors in respect of REIT dividends.