788. Deputy Aidan Farrelly asked the Tánaiste and Minister for Finance the estimated amount that could be raised by increasing the dividend withholding tax on REITs and IREFs from 25% to 33%; and if he will make a statement on the matter. [57350/26]

A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. The function of the REIT framework is not to provide an overall tax exemption but rather to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle. REITs are publicly listed companies - therefore distributions are dividends within the scope of Dividend Withholding Tax (DWT), which applies at a rate of 25%. REITs are obliged to distribute at least 85% of profits annually. Irish resident investors are liable to tax at their marginal rates on dividends received, with a credit for the DWT deducted. Non-Irish resident investors are subject to DWT at 25%. Those resident in treaty-partner countries may be able to reclaim some of this DWT under the relevant tax treaty.

An Irish Real Estate Fund (IREF) is an Irish regulated investment fund, or sub-fund where at least 25% of the value of its assets is derived from Irish real estate. As an investment fund, the income and gains of an IREF are not subject to corporation tax or capital gains tax, instead under the IREF regime, a withholding tax (WHT), at a rate of 20%, is generally applied at the point in time where the value of profits generated within the IREF are passed to a non-resident unit holder. When value passes from the fund to Irish resident investors, investment undertaking tax (IUT) is generally applied. IREFs are not required to operate DWT in the same manner as REITs. The IREF withholding tax is charged at 20% (as outlined above) and operates separately to DWT.

In certain circumstances non-resident investors can make a claim to Revenue for the IREF WHT to be refunded or reduced, for example, under the terms of a double taxation treaty.

In addition to 20% IREF WHT, Finance Act 2019 introduced anti-avoidance measures, such as a charge to income tax at the level of the IREF in certain circumstances, to prevent the use of excessive debt and other payments to reduce distributable profits.

I am advised by Revenue that the yield from changes to the rate of IREF WHT would be dependent on the level of future distributions by IREFs, or other occasions where the value of profits generated within the IREF are passed to a non-resident unit holder. There is no basis available to provide a reliable estimate of such future activity.

However, the Deputy may be interested to note the information published in Table 31 of the Revenue research report on Corporation Tax, which shows information on IREF payments remitted to Revenue by IREFs from 2019 - 2025 based on returns filed with Revenue. This is available on the Revenue website at: https://www.revenue.ie/en/corporate/documents/research/ct-analysis-2026.pdf

Due to the low number of REITs operating in Ireland and Revenue’s obligation to maintain taxpayer confidentiality, as provided for in Section 851A of the Taxes Consolidation Act 1997, data in relation to REITs cannot be provided. However, REITs are required to trade as publicly listed companies and therefore are required to publish information such as annual accounts online, which may be of assistance to the Deputy.