Declaring dividend payments to the Revenue Commissioners

[Patrick K]

I have a small shareholding in a certain company and have received dividend payments over the years. I have never sold any of these shares and so have not had to deal with CGT on them. However, I was wondering if I need to declare my dividends to the Revenue? I can see that the company paying me the dividend already deducts DWT so is there any need for me to do anything further?

 

[rainyday]

Is it an Irish company? Is the DWT paid over to Irish Revenue Commissioners?

 

[Patrick K]

Hi Rainyday,

Thank you for your replies. Yes, it is an Irish company so presumably the DWT woulld have been paid to the Irish Revenue Commissioners.

What would be the case for dividends received from a UK company such as Vodafone?

 

[Guest]

> Yes, it is an Irish company so presumably the DWT woulld have been paid to the Irish Revenue Commissioners.

DWT is 20% so if you are a 20% taxpayer then you have no further liability for tax on dividends (although you may still be obliged to declare them anyway as far as I know). If you are a 42% taxpayer then you are obliged to declare the dividend payments and pay the outstanding 22% balance.

> What would be the case for dividends received from a UK company such as Vodafone?

Same as above except that you will be given a credit for any UK DWT witheld at source and remain liable for the balance which brings you up to your marginal income tax rate.

Note that you should retain all dividend payment counterfoils and (Irish or UK) DWT certs for tax purposes.