EU Deposit Interest - Revenue Reporting

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Corola

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I don't agree that practically everyone is at 37% or using Form 11 over Form 12. If you use Form 12 you will pay 33% without PRSI. It says in the link:

PAYE tax payers who are not considered 'chargeable persons' by Revenue are not liable for the new PRSI charge. A person is not a 'chargeable person' if their income from non-PAYE sources is less than €5,000 and this income is taxed under the PAYE system.
 
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Corola said:
I don't agree that practically everyone is at 37% or using Form 11 over Form 12. If you use Form 12 you will pay 33%.
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Personally I don't have access to Form 12 - but it seems to be the case based on the link from citizens information that it is 33%.

Can anyone actually confirm thought that if they put in interest of say 100 euro it really is 33%? I suppose over 5k in interest would be relatively uncommon - so if that's the case then yes I'd agree that it's not practically everyone will be paying 37%.

Might also mean that someone earning just about 5k might want to deliberately keep their interest under the limit?
 
According to other forums, in their Statement of Liability "EU Deposit Interest" is being coded as "Other Foreign Income" and taxed at their marginal rate.

Revenue has some catching up to do.
 
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At least with the Form 11 it's easy to play around with online and see they charge DIRT+PRSI for any amount of interest, I can't do the same for the other forms but I'm not entirely surprised that they may be, initially at least, charging some people income tax.

This is new ground for Revenue.

PRSI was only added in 2014 - but it didn't matter until the last year or two as the interest rates were 0%
Before 2014 when interest rates were higher - most savings were held in Irish banks, DIRT being hoovered up automatically.

in 2024 they've non-Irish banks, interest self-declared, and PRSI involved. And seemingly a million euro a day flowing into Bunq, so presumably significant numbers of people needing to declare.
 
Getting a bit confused by this thread.
If I have money in deposit in Bunq, TR, Raisin etc how much tax is owed on the interest received?
I thought it was 33÷ unless you go above the limit?
 
Lightning said:
Bunq, TR and Raisin is EU deposit interest. If you earned less than 5,000 Euros in one year then the applicable tax rate is 33%.

See Revenue webpage here https://www.revenue.ie/en/additional-incomes/dirt/who-is-charged-dirt.aspx#:~:text=The DIRT rate since 2020,37% for 2018

But it seems like the revenue are incorrectly applying income tax rates for some people for EU deposit interest for 2023. I would think that people affected by this should challenge the Revenue.
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I sent enquiry to Revenue in January on how to declare interest earned from non Irish banks (Trade republic etc).
I couldn't find a place to put the amount, except under *Other foreign Income", where I put the total of interest earned.

I just checked Revenue.
PAYE/USC STATEMENT OF LIABILITY FOR THE TAX YEAR -
Under Income from Employments, Pensions and other sources, they have new heading Other Foreign Income with the total amount of interest earned.

Is this what others do?

From the conversation above, I can't see how this would be taxed at 33%, but more like the 40% income tax bracket.

Also @Lightning - was reading the trading 212 discussion here. It appears that the video "Malone Financial" put up called "New BEST Savings Account Ireland 2024?" he is saying tax is 41% at 6min 52s. Not sure if links are allowed, so will not include.

(I'm so happy I found this forum. Thank you all).
 
There is a specific heading in Form 12 for EU Deposit Interest:

Screenshot 2024-02-11 230819.png


Other Foreign Income is not the right place, it is charged to Income tax + USC, not DIRT.
 
Corola said:
There is a specific heading in Form 12 for EU Deposit Interest:

View attachment 8426

Other Foreign Income is not the right place, it is charged to Income tax + USC, not DIRT.
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For Form 11 submitters who are under the €5K non-PAYE income threshold (but who use Form 11 because of RTSO/ESPP, RSUs, CGT etc), is there an equivalent entry field for EU Deposit Interest (or alternate wording)?
 
I submitted a return in Jan this year for €700 EU interest earned in 2023. Entered it on Income Tax Return as 'EU ‘Other’ Interest (excluding UK interest)'.
Received a 'Statement of Lability' from Revenue today in which the interest was listed as 'Other foreign income' and liable for PAYE and USC.
 
patjohn said:
I submitted a return in Jan this year for €700 EU interest earned in 2023. Entered it on Income Tax Return as 'EU ‘Other’ Interest (excluding UK interest)'.
Received a 'Statement of Lability' from Revenue today in which the interest was listed as 'Other foreign income' and liable for PAYE and USC.
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Thanks. To confirm, your return was via Form 11 & your total non-PAYE income was less than €5K?

Has anyone challenged Revenue on this either in advance (before submitting a return) or retrospectively (after submitting a return)?
 
patjohn said:
I submitted a return in Jan this year for €700 EU interest earned in 2023. Entered it on Income Tax Return as 'EU ‘Other’ Interest (excluding UK interest)'.
Received a 'Statement of Lability' from Revenue today in which the interest was listed as 'Other foreign income' and liable for PAYE and USC.
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You used the wrong option too. (Second report here of someone choosing the wrong option).

EU deposit interest should not be put under "EU ‘Other’ Interest (excluding UK interest)."

EU deposit interest should only be put under "EU deposit interest".

Re-submit your form if possible or contact the Revenue and ask them to change it.
 
georgeJ6 said:
Thanks. To confirm, your return was via Form 11 & your total non-PAYE income was less than €5K?

Has anyone challenged Revenue on this either in advance (before submitting a return) or retrospectively (after submitting a return)?
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Assume Form 12, I am PAYE worker - I cannot see a form reference to confirm.
Went in to Revenue online, clicked 'Review your tax 2020-2023' and then completed the 'Income Tax Return form' for 2023.
Yes the EU interest was only non PAYE income and was €700 for the year.
 
I had same issues from 12 paye worker. In my case under taxation of DIRT.

Check my form 12 submitted it was down correctly as "EU deposit interest non including UK" SOL does not show this DIRT tax so raised a query. But if I go into ament my return can see it got changed to "other foreign income including rents" . This was not done by me so think the system got bug or human error. Attached is both sections in what I submit vs now
 

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Seems to be a mixture of 2 issues going on based on reports here and on other forums.

Some issues are from people submitting EU deposit interest under the wrong heading.

And Revenue, in some but not all cases, applying the wrong tax even after it was submitted correctly. @irbx - Please let us know how you get on with getting Revenue to fix this.
 
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