EU Deposit Interest - Revenue Reporting

I haven't given up and I've found a more clear summary of how deposits from EU should be taxed.
I can't include links (not enough comments in askaboutmoney) but you can find searching for "5-taxation-investment-products" in google and find a gov.ie page.

I am going to send this to the Revenue and ask a review again of my taxes as it is clear it should be taxed at 33%.

Here a screenshot:

screenshot.png
 
Bradipo said:
I haven't given up and I've found a more clear summary of how deposits from EU should be taxed.
I can't include links (not enough comments in askaboutmoney) but you can find searching for "5-taxation-investment-products" in google and find a gov.ie page.

I am going to send this to the Revenue and ask a review again of my taxes as it is clear it should be taxed at 33%.

Here a screenshot:

View attachment 8484
Click to expand...
There you go

5. Taxation of investment products | Department of Finance Consultation Portal

consult.finance.gov.ie consult.finance.gov.ie
 
Corola said:
The EU is not included in the definition of "foreign" bank account here. So it is Form 12 / myAccount and not liable to PRSI.

Opening a foreign bank account

You must file a Form 11 tax return for any year that you open a foreign bank account.
www.revenue.ie www.revenue.ie
You must file a Form 11 tax return for any year that you open a foreign account in a:
Click to expand...
I used *my account*. (I have never found a "form 11" or "form 12".... ). My tax is PAYE. I pay higher rate of tax.

This is what revenue sent to me this week, through 'my enquiries'.
They have put the total amount of interest I declared for 2023 onto my *P21 Balancing Statement of Liability*. It was €399 and it was put under Income. Therefore, does this mean I am paying higher rate of tax and also PRSI?
 

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Same experience here.
Included interest earned with Raisin in EU Deposit Interest online in my account.
The statement of liability shows this EU deposit interest as ‘other Foreign income’
The result is that it is being taxed at my highest rate.
Some of my health expenses also went missing.
This certainly will not help competition for deposits in Ireland.
I am very surprised this is not against EU rules.
 
carmel65 said:
I am very surprised this is not against EU rules.
Click to expand...

It could be argued - based on some of what I've read here - that Revenues current implementation could be at odds with EU policy.

european-union.europa.eu

Tax – personal, corporate and cross-border | European Union

Find out about personal and corporate taxes in EU countries, the scope of the EU’s taxation powers, cross-border tax issues, VAT and excise duty. Latest news.
european-union.europa.eu european-union.europa.eu

I wouldn't be running to the Margrethe Vestager just yet - it's probably not been a significant issue for Revenue up to now (or even now) - but it would be interesting to hear Revenues argue their side.
 
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carmel65 said:
Same experience here.
Included interest earned with Raisin in EU Deposit Interest online in my account.
The statement of liability shows this EU deposit interest as ‘other Foreign income’
The result is that it is being taxed at my highest rate.
Some of my health expenses also went missing.
This certainly will not help competition for deposits in Ireland.
I am very surprised this is not against EU rules.
Click to expand...

This is a *mistake* by Revenue yet again.

It is not a policy issue. It is an operational Revenue issue.

The same tax rate applies to interest for EU bank interest and Irish bank interest.

Go back to Revenue and say that the interest needs to move from "other foreign income" to EU deposit interest and it should be taxed at 33% as per their website. Ask for this to be escalated.

This is shockingly awful behaviour by Revenue.
 
Lightning said:
This is a *mistake* by Revenue yet again.

It is not a policy issue. It is an operational Revenue issue.

The same tax rate applies to interest for EU bank interest and Irish bank interest.

Go back to Revenue and say that the interest needs to move from "other foreign income" to EU deposit interest and it should be taxed at 33% as per their website. Ask for this to be escalated.

This is shockingly awful behaviour by Revenue.
Click to expand...
I rang them today and they told me they will look into it and give me a reply on the following days. Certainly if this is not sorted out we should escalate this to the tax appeals commission as they keep perseverating on treating this as foreign income for everybody
 
Same issue for me, I submitted EU Deposit Interest and it was charged to Other Foreign Income. I responded through MyEnquiries and sent the link to the relevant Revenue webpage. Response:

Thank you for your enquiry.

You are correct, this declaration was coded incorrectly.

I have deleted 'Other Foreign Income' and processed 'Deposit Interest Received'

A corrected Statement of Liability will issue over the coming days.

Thank you for bringing this error to our attention.
Click to expand...
 
Would you mind sharing your exact message to revenue, I might just copy it if you didn't mind. Good you got sorted, hopefully...
 
gvn1509 said:
Would you mind sharing your exact message to revenue, I might just copy it if you didn't mind. Good you got sorted, hopefully...
Click to expand...
"Hi, I submitted my Income Tax return on [date] and I declared €[amount] of EU Deposit Interest. In my Statement of Liability it has been coded as Other Foreign Income. I believe this is incorrect as Other Foreign Income is charged to Income Tax + USC @ 48%, whereas Deposit Interest is charged to DIRT @ 33%.

As stated here: https://www.revenue.ie/en/additional-incomes/dirt/who-is-charged-dirt.aspx

If you receive interest from an account in another EU Member State, you must pay the current DIRT rate on the interest income.

Kind regards,
[name]"
 
Corola said:
"Hi, I submitted my Income Tax return on [date] and I declared €[amount] of EU Deposit Interest. In my Statement of Liability it has been coded as Other Foreign Income. I believe this is incorrect as Other Foreign Income is charged to Income Tax + USC @ 48%, whereas Deposit Interest is charged to DIRT @ 33%.

As stated here: https://www.revenue.ie/en/additional-incomes/dirt/who-is-charged-dirt.aspx

If you receive interest from an account in another EU Member State, you must pay the current DIRT rate on the interest income.

Kind regards,
[name]"
Click to expand...
Wow, thank you. That is so helpful.
 
Finally good news from my case as well.
I got confirmation from the revenue that my statement is going to be amended and the correct charge is 33% as it is EU deposit.
No mention about Form type or current tax situation as it doesn't matter.
I mentioned the link I found time ago in my request (the 5-taxation-investment-products in the gov.ie site)

I suppose now the officers are all taking the same approach, but I would say affected people need to send a request for correction.
 
I need to ask are people submitting the enquiry to Revenue before or after submitting the Form? I know for (i think) Form 11 you can put in all your details and see the taxable amount before finalising/submitting to revenue.
 
In Form 12 you can't see what the impact on your tax will be, until you receive the Statement of Liability.
 
I submitted Form 11 a few days ago and the EU deposit interest tax was correctly calculated at 33%. I also had to pay PRSI at 4% on the EU deposit interest. I.e. same as many people using Form 11 have previously reported. Looks like the calculation error only relates to whatever back-end processing happens after you submit Form 12.
 
Same issue for me.

Surprised a journalist hasn't picked up on this. If we can't trust Revenue to calculate according to their own rules ...

And if they now know they messed up, why no proactive assessment of all cases where EU deposit interest was notified?
 
podgerodge said:
Same issue for me.

Surprised a journalist hasn't picked up on this. If we can't trust Revenue to calculate according to their own rules ...

And if they now know they messed up, why no proactive assessment of all cases where EU deposit interest was notified?
Click to expand...
100% agree. They should validate all the assessment again as this is their fault.
Most probably they are understaffed as many important sector here.
 
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