Paying Irish tax on US dividends

J

JMG

Registered User
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Hello all.

In 2019 I received a small amount of dividend payment from US shares I own - total amount received was about $250. I have paid US withholding tax on this income, but no Irish tax. I searched here for previous posts on paying Irish tax on US dividends and I think I now know what I have to do. But I would appreciate if someone who is more experienced than I could confirm what I say below. And I do have a couple of questions that I couldn't find answers to.

My understanding of what I have to do is the following:
  • Login to myAccount on Revenue.ie
  • Open "Review your tax 2019" i.e. to submit my tax return for 2019
  • In the "Non-PAYE income" section open Dividends and then select "US Dividends"
  • Enter the total amount of US dividends received, converted to Euro i.e. $250 converted to Euro, I don't deduct the 15% US tax already paid, Revenue will automatically do that.
  • Complete the rest of the form and save it.
  • Done! Or am I? Is the above correct or is there any step missing?
Questions:
  1. Should I have paid the tax back in 2019 when I received the dividends? Will Revenue stick me with late payment charge?
  2. How do I now pay the tax i.e. do I transfer any money to revenue or do revenue simply include this as a negative when they calculate my tax credits for next year?
  3. How do I determine what exchange rate to use for converting dollars to euros?
  4. In the "Tax credits & reliefs" section of the form, under "Add tax credits", "Other Credits" there is an option to add "Irish Tax Deducted On Foreign Dividends". But I assume in my case I do not enter anything here as I have not actually paid any Irish tax on the dividend income yet?
Thanks to anyone who reviews this and for any answers offered.
 
First the Revenue will not be penalising you.

The process outlined by you sound right. I assume you should be able to get your P21.

The rate they use is probably the average rate for the year - these are available on Revenue website.

When you see the P21 a credit should be included for the US tax paid.

W
 
Hi,
JMG said:
Hello all.

In 2019 I received a small amount of dividend payment from US shares I own - total amount received was about $250. I have paid US withholding tax on this income, but no Irish tax. I searched here for previous posts on paying Irish tax on US dividends and I think I now know what I have to do. But I would appreciate if someone who is more experienced than I could confirm what I say below. And I do have a couple of questions that I couldn't find answers to.

My understanding of what I have to do is the following:
  • Login to myAccount on Revenue.ie
  • Open "Review your tax 2019" i.e. to submit my tax return for 2019
  • In the "Non-PAYE income" section open Dividends and then select "US Dividends"
  • Enter the total amount of US dividends received, converted to Euro i.e. $250 converted to Euro, I don't deduct the 15% US tax already paid, Revenue will automatically do that.
  • Complete the rest of the form and save it.
  • Done! Or am I? Is the above correct or is there any step missing?
Questions:
  1. Should I have paid the tax back in 2019 when I received the dividends? Will Revenue stick me with late payment charge?
  2. How do I now pay the tax i.e. do I transfer any money to revenue or do revenue simply include this as a negative when they calculate my tax credits for next year?
  3. How do I determine what exchange rate to use for converting dollars to euros?
  4. In the "Tax credits & reliefs" section of the form, under "Add tax credits", "Other Credits" there is an option to add "Irish Tax Deducted On Foreign Dividends". But I assume in my case I do not enter anything here as I have not actually paid any Irish tax on the dividend income yet?
Thanks to anyone who reviews this and for any answers offered.
Click to expand...


Hi,

Yes I had to do the exact same thing this week for miniscule 2019 US dividends, Have not figured out how to actually Pay it yet though.

I'm presently tearing my hair out trying to fill a CG1 form to account for losses in 2019. What fields are necessary and what aren't? It's a minefield. . . I'd literally pay someone on here to guide me through it once so I understand this one form.
 
Thanks WizardDr for the reply, sorry for the delayed thanks, been too busy with work during the week.

Ted110, best of luck.
 
Ted110 said:
Hi,



Hi,

Yes I had to do the exact same thing this week for miniscule 2019 US dividends, Have not figured out how to actually Pay it yet though.

I'm presently tearing my hair out trying to fill a CG1 form to account for losses in 2019. What fields are necessary and what aren't? It's a minefield. . . I'd literally pay someone on here to guide me through it once so I understand this one form.
Click to expand...
What capital loss do you have?
Have you set up a bank account with revenue?
 
I'm in somewhat of a similar situation about dividends and wondering what the process is. All I can find related to dividends is like being self employed and paying yourself dividends. Can't find much about receiving dividends from shares.

So for this year 2020, I have so far received around €170 into my account and am wondering about the tax on it. How to pay it, declare it etc. It was from RDS.B (so UK based from what I understand).

Like the steps you've mentioned above, under my account > add new income > UK dividends > enter the full amount received in Euro > gives me a tax credit figure.... and is that it?

1. Do I actually need to pay anything or do they just take it from my next paycheck or what? It's not clear (to me at least)
2. Do I need to file anything after this, like next year, or is this the same as filing manually?

I've gotten more useful information from this form than from Revenue and their site... I'm just trying to do everything right! Thnx!
 
Paul O Mahoney said:
You are taxed on the gross amount at conversion rate, and Revenue apply the US tax paid as a tax credit.
Click to expand...

Related question, I have Irish, French and US dividends to declare. As far as I know I put the sum of the gross Irish & French figures under "Dividends & Distributions", and the gross US figure "US dividends". is that correct?
 
Are Irish & Foreign(French, US) not reported separately?

I haven't held any Irish shares for years but the dividends from Irish companies were reported separately from foreign
 
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