The Institute responded to the Department of Finance’s “Feedback Statement on a Participation Exemption for Foreign Dividends” on 8 May. The Minister for Finance, Michael McGrath TD, committed in a roadmap, in September 2023, to introducing a participation exemption for foreign dividends in Finance Bill 2024, which would come into effect from 1 January 2025. In our response we identified a number of elements of the “Strawman Proposal” for a participation exemption, which was set out in the Feedback Statement, that we believe should be reconsidered. These included the following.
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