DIRT & PRSI on Savings Accounts

mcriot29 said:
Mr Noonan said he was increasing the DIRT tax on deposits by 3 per cent to 33 per cent, decreasing the threshold at which Capital Acquisitions Tax applies by 10 per cent and increasing the rates of Capital Acquisitions Tax and Capital Gains Tax by 3 per cent to 33 per cent from midnight tonight.
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Does he not mean Capital acquisitions tax and capital gains tax to rise to 33% from midnight but DIRT from 1 January 2013?
 
If An Post State Savings exempt there will be a massive shift of monies to the State Savings.

Never heard the interest you get from An Post state savings as being referrd to as deposit interest - although it is such. d'ont think the literature on bonds/certs state 'deposit interest'.

Maybe that's what their hoping for -they want our money bad !.
 
PRSI def applies from 1/1/14 but whether or not to An Post is the only question.
 
Lads, this is not complicated - certain State savings are not seen as income and hence are exempt from income tax.

Since they aren't "income" they aren't reckonable for PRSI either, unless they specifically write it into the legislation, which you'd have to assume isn't happening or he would have said they're doing it.
 
Sure hope your right Mandlebrat.

If so just watch the money pour into the state coffers.
 
Surely saving certs and bonds are the same as Government gilts and bonds and therefore completely exempt from taxation
 
So deposit interest is subject to 33% tax from midnight and PRSI from 1/1/14.

So what is that in total to be taken from the ordinary depositor - is it over 40% by 1/1/14.

Sure if An Post bonds/certs are tax free like Govt bonds full stop then An Post will see a wall of money hit it.
 
Yes but the 10 year bond only has 10 percent subject to dirt , what about the 40 percent bonus
 
mcriot29 said:
What about the anpost 10 year bond 40percent bonus is that the same
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I can't make it any clearer than I did above...! Is the bonus exempt from income tax, and therefore (and the next word in bold is a big hint) NOT income...
 
Noonans full speech is here.

There was a pause in between Capital Acquisitions Tax and DIRT. Hence, it might only be Capital Acquisitions Tax that goes up tonight.

Capital Taxes



A key element of this Budget has been to ensure fairness. In that context, I am introducing a number of measures in the area of capital taxes to ensure that people with wealth make a fair contribution to the State. These include:



Decreasing the threshold at which Capital Acquisitions Tax applies by 10 per cent.



Increasing DIRT from 30 per cent to 33 per cent.



Increasing the rates of Capital Acquisitions Tax and Capital Gains Tax by 3 per cent to 33 per cent from midnight tonight.
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If it is midnight tonight for the DIRT then still time to phone AIB Direct for example and only get hit with the 30%.
 
The PRSI change for Deposit Income is from 2014

Taken from the Minister's Speech:

"Minister Burton will also bring forward legislation to change PRSI contributions as follows:

Where modified PRSI rate payers have income from a trade or profession, such income and any unearned income they have will be made subject to PRSI with effect from the 1st of January 2013.
Unearned income for everyone else will become subject to PRSI in 2014. This means that PRSI will be payable on income generated from wealth such as rental income, investment income, dividends and interest on deposits and savings."

http://budget.gov.ie/budgets/2013/FinancialStatement.aspx#section10
 
So what is the best Option for us ?

My husband is a PAYE worker. I am a Stay-at-Home Parent. He pays PRSI. We are assessed jointly for Tax purposes. He gets my Tax Credits and the Home Carer Tax Credit. I have no income apart from Child Benefit (is that classed as income ?) of now €260 per month.

We have no other income and have no rental income, dividends etc. But we do have Savings. We each have some in our own name and some joint savings. There is also some small amounts in Savings Account for each of the children.

So will he pay PRSI on the Deposit Interest earned on his Savings ? As I don't pay PRSI (now) will I have to pay PRSI anyway on the Deposit Interest on my Savings ? What about the Savings Accounts in our Joint Names ? What about the Children's Acccounts ?

Would it be best to put all our Savings into my name ? Or just get some An Post Savings Bonds or Certs ?

How will the PRSI be collected for people like us who do not need to file a Tax Return at the moment ? Or will it be deducted at source by the Bank ?
 
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Knew it would be from 1 January 2013.

Greekwife said:
DIRT is going up from 01/01/2013

http://budget.gov.ie/budgets/2013/Documents/Summary of 2013 Budget Measures Policy Changes.pdf

Scroll down to TAX on SAVINGS
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Full extract below. The other DIRT rate is now 36%.

Deposit Interest Retention Tax and Exit Taxes on
Life Assurance Policies and Investment Funds
The rate of retention tax that applies to deposit interest,
together with the rates of exit tax that apply to life
assurance policies and investment funds, are being
increased by 3 percentage points and will now be 33% for
payments made annually or more frequently and 36% for
payments made less frequently than annually. The
increased rates will apply to payments, including deemed
payments, made on or after 1 January 2013.
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