Ryanair 2016 Annual Report Download - page 132

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state or tax treaty country the declaration also must contain an undertaking by the individual or corporate non-resident
stockholder that he, she or it will advise the Company accordingly if he, she or it ceases to meet the conditions to be entitled
to the DWT exemption. No declaration is required if the stockholder is a 5% parent company in another EU member state
in accordance with section 831 TCA 1997. 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 universal social charge. 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 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.
Capital Gains Tax. A person who is either resident or ordinarily resident in Ireland will generally be liable for
Irish capital gains tax on any gain realized on the disposal of the Ordinary Shares or ADSs. The current capital gains tax
rate is 33%. A person who is neither resident nor ordinarily resident in Ireland and who does not carry on a trade in Ireland
through a branch or agency will not be subject to Irish capital gains tax on the disposal of the Ordinary Shares or ADSs.
Irish Capital Acquisitions Tax. A gift or inheritance of the Ordinary Shares or ADSs will be within the charge to
Irish Capital Acquisitions Tax (“CAT”) notwithstanding that the donor or the donee/successor in relation to such gift or
inheritance is resident outside Ireland. CAT is charged at a rate of 33% above a tax-free threshold. This tax-free threshold
is determined by the amount of the current benefit and of previous benefits taken since December 5, 1991, as relevant,
within the charge to CAT and the relationship between the donor and the successor or done. Gifts and inheritances between
spouses (and in certain cases former spouses) are not subject to CAT.
In a case where an inheritance or gift of the Ordinary Shares or ADSs is subject to both Irish CAT and foreign
tax of a similar character, the foreign tax paid may in certain circumstances be credited in whole or in part against the Irish
tax.
Irish Stamp Duty. It is assumed for the purposes of this paragraph that ADSs are dealt in on a recognized stock
exchange in the United States (NASDAQ is a recognized stock exchange in the United States for this purpose). Under
current Irish law, no stamp duty will be payable on the acquisition of ADSs by persons purchasing such ADSs or on any
subsequent transfer of ADSs. A transfer of Ordinary Shares (including transfers effected through Euroclear U.K. & Ireland
Limited) wherever executed and whether on sale, in contemplation of a sale or by way of a gift, will be subject to duty at
the rate of 1% of the consideration given or, in the case of a gift or if the purchase price is inadequate or unascertainable,
on the market value of the Ordinary Shares. Transfers of Ordinary Shares that are not liable for duty at the rate of 1% (e.g.,
transfers under which there is no change in beneficial ownership) may be subject to a fixed duty of €12.50.