A higher-rate taxpayer receives a dividend from an Irish REIT. Which taxes would be liable in respect of this dividend?

• A. i) only.
• B. ii) and iii) only.
• C. i) and iii) only.
• D. i, ii and iii.

Answer: (A)

Dividends from Irish REITs are taxed at the investor level rather than at the company level. The REIT’s pass-through structure means the distributed profits aren’t taxed again to the company; instead, the shareholder pays tax on the distribution as part of their own income.

For a higher‑rate taxpayer, that dividend is included in assessable income and taxed at the person’s marginal income tax rate. There isn’t a separate withholding tax on Irish resident recipients of such dividends, and investment income like dividends is not charged to PRSI; in this context the tax focus is on income tax. Therefore, the tax liable on the dividend, in this scenario, is solely income tax.