Ireland-US treaty: status and key articles
The Ireland-US tax convention is among the most comprehensive bilateral treaties. Current version covers income tax, dividends, royalties, interest, capital gains, pensions, residency tie-breakers, and detailed limitation-on-benefits provisions.
- Article 7 (Business Profits): Irish-resident operating profits are taxable only in Ireland without US PE.
- Article 10 (Dividends): 0% in qualifying parent-subsidiary cases (10%+ ownership, 12-month holding). 5% for 10%+. 15% standard.
- Article 11 (Interest): 0% on most portfolio interest.
- Article 12 (Royalties): 0% under the treaty.
- Article 24 (Limitation on Benefits): LOB rules apply.
Withholding rates by income type for Irish residents
| Income type | Default US rate | Ireland treaty rate |
|---|---|---|
| US-source dividends (parent-sub qualifying) | 30% | 0% |
| US-source dividends (10%+ ownership) | 30% | 5% |
| US-source dividends (standard) | 30% | 15% |
| US-source portfolio interest | 30% | 0% |
| US-source royalties | 30% | 0% |
| Business profits without US PE | Generally not taxed | Generally not taxed |
How Revenue treats US LLCs
Irish Revenue generally treats US single-member LLCs as transparent for Irish tax purposes (similar to a partnership). LLC operating income flows through to your Form 11 (Irish income tax return) and is subject to Irish income tax, USC (Universal Social Charge), and possibly PRSI depending on classification.
Multi-member LLCs may be treated as partnerships or companies depending on operating agreement. Most Irish founders we serve operate single-member Wyoming LLCs with clean pass-through treatment.
How to file W-8BEN-E from Ireland
- Line 1: LLC legal name
- Line 4: Chapter 3 status: Disregarded Entity
- Line 5: Country of residence: Ireland
- Line 6: Permanent residence address in Ireland
- Line 8: US TIN (EIN)
- Line 9: Foreign TIN (your Irish PPSN)
- Part III: claim treaty benefits citing Article 10 for dividends
Common mistakes by Irish founders
- Not declaring LLC income on Form 11 (foreign income section)
- Not filing W-8BEN-E with US payers (30% default applies)
- Missing Form 5472 + 1120 ($25K penalty)
- Triggering Irish CFC rules (ATAD-aligned) on passive holding structures
- Not budgeting for USC on transparent LLC income