Ryanair 2009 Annual Report Download - page 115

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Persons (other than a company) who (i) are neither resident nor ordinarily resident in Ireland and (ii) are resident
for tax purposes in (a) a country which has signed a tax treaty with Ireland (a “tax treaty country”) or
(b) an EU member state other than Ireland;
Companies not resident in Ireland which are resident in an EU member state or a tax treaty country, by virtue of
the law of a tax treaty country or an EU member state, and are not controlled, directly or indirectly, by
Irish residents;
Companies not resident in Ireland which are directly or indirectly controlled by a person or persons who are, by
virtue of the law of a tax treaty country or an EU member state, resident for tax purposes in a tax treaty
country or an EU member state other than Ireland and which are not controlled directly or indirectly by
persons who are not resident for tax purposes in a tax treaty country or EU member state;
Companies not resident in Ireland the principal class of shares of which is substantially and regularly traded on a
recognized stock exchange in a tax treaty country or an EU member state including Ireland or on an
approved stock exchange; or
Companies not resident in Ireland that are 75% subsidiaries of a single company, or are wholly-owned by two or
more companies, in either case the principal classes of shares of which is or are substantially and
regularly traded on a recognized stock exchange in a tax treaty country or an EU member state
including Ireland or on an approved stock exchange.
In the case of a non-resident stockholder resident in an EU member state or tax treaty country, the
declaration must be accompanied by a current certificate of tax residence from the tax authorities in the
stockholder’s country of residence. In addition, in the case of non-resident companies that are tax residents of an
EU member state other than Ireland or a tax treaty country or non-resident companies controlled by residents of
an EU member state including Ireland or of a tax treaty country or the shares of which are substantially and
regularly traded on a stock exchange in an EU member state other than Ireland or a tax treaty country, certain
certification by their auditors is required. The declaration also must contain an undertaking by the non-resident
or non-ordinarily resident person that he, she or it will advise the relevant person accordingly if he, she or it
ceases to be a non-resident or non-ordinary resident. No declaration is required if the stockholder is a 5% parent
company in another EU member state pursuant to the EC Parents-Subsidiary Directive. Neither is a declaration
required on the payment by a company resident in Ireland to another company so resident if the company
making the dividend is a 51% subsidiary of that other company.
American Depositary Receipts. Special arrangements with regard to the dividend withholding tax
obligation apply in the case of Irish companies using ADRs through U.S. depositary banks that have been
authorized by the Irish Revenue. Such banks, which receive dividends from the company and pass them on to
the U.S. ADS holders beneficially entitled to such dividends, will be allowed to receive and pass on the gross
dividends (i.e., before withholding) based on an “address system” where the recorded addresses of such holder,
as listed in the depositary bank’s register of depositary receipts, is in the United States.
Taxation on Dividends. Companies resident in Ireland other than those taxable on receipt of dividends
as trading income are exempt from corporation tax on distributions received on Ordinary Shares from other Irish
resident companies. Stockholders that are “close” companies for Irish taxation purposes may, however, be
subject to a 20% corporation tax surcharge on undistributed investment income.
Individual stockholders who are resident or ordinarily resident in Ireland are subject to income tax on
the gross dividend at their marginal tax rate, but are entitled to a credit for the tax withheld by the company
paying the dividend. The dividend will also be subject to the new income tax levy. An individual stockholder
who is not liable or not fully liable for income tax by reason of exemption or otherwise may be entitled to
receive an appropriate refund of tax withheld. A charge to Irish social security taxes / levies can also arise for
such individuals on the amount of any dividend received from the Company.
Except in certain circumstances, a person who is neither resident nor ordinarily resident in Ireland and
is entitled to receive dividends without deductions is not liable for Irish tax on the dividends. Where a person
who is neither resident nor ordinarily resident in Ireland is subject to withholding tax on the dividend received
due to not benefiting from any exemption from such withholding, the amount of that withholding will generally
satisfy such person’s liability for Irish tax.