Dividend income on DeGiro and withholding tax

S

stefanop

Registered User
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Hello

I’m a Payee individual and wonder if anyone more expert than me, could have a quick look and check the table and help with a question ?
I bought a number of shares across Europe using DeGiro. I haven't sold any shares yet but received some €€€
dividend last year in 2024 as shown below (screenshot taken from the Degiro statement for 2024) and would need to report
it under myAccount. This will only be my extra income other than my Paye wage for 2024.

1762189029821.webp


My total gross dividend income was 1789€ as shown however there was a withholding tax of 438€ applied as per the table above. When I report it in myAccounts,
do I need to report this dividend income as follows ?


1762189053311.webp


Are there any other elements to consider ?
Thanks a lot for any suggestions

Stefano
 
For most of these countries you can only take a 15% tax credit against your taxable income in Ireland and this is called the treaty rate. Accordingly, the tax credit should be around €268 - i.e. 1789 X 15%. You can reclaim the remainder of the tax from the foreign tax authorities. However in practice people don't bother as the amounts are too small to complete the forms. To be more technically correct the tax credit you take should be the lower of 15% of the dividend or the tax withheld. I'd would imagine most people woul take a tax credit of €438 but that doesn't make it correct.
 
Wrong - the max tax deducted you can claim is limited to 15% - this is the non-refundable tax that the other country is allowed to charge

If more than this was deducted, you must reclaim it back from the other country
 
Thanks for the feedback folks. I did some more research this evening and it looks like as JPD and Dublin67 mention for most countries the max allowable is 15% then it's up to you to chase the tax systems in the other countries to get the refund (which is unrealisitc for a few hundred €€). I think 268€ is the correct figure because it says "Non Refundable" foreign tax deducted. So the 15% (268€) is not refundable by the foreign country since it is refunded by Revenue. Whatever is above 15% can be refunded by requesting the credit to the foregin country.
 
Stefano, you've landed on the right answer with the €268 figure but "15% across the board" isn't quite right either, and this is an area where a lot of DEGIRO users get caught out.

The double taxation treaty rate between Ireland and each country is the cap on what you can claim as a foreign tax credit. For most countries, yes, that's 15%. But it varies. Ireland-Germany is 15%, Ireland-France is 15%, Ireland-UK is 15% for portfolio dividends but can be 5% for substantial holdings. Some countries withhold well above the treaty rate at source.

What this means in practice: you need to look at each country's dividends separately, not lump them together.
For each country: 1. Take the gross dividend amount. 2. The foreign tax credit you can claim is the lower of the actual WHT deducted or the treaty rate x gross dividend. 3. If the country withheld more than the treaty rate (common with France at 25-30%, Switzerland at 35%), you've overpaid. Technically you can reclaim the excess from the foreign tax authority but in practice nobody does for small amounts.

When entering it in myAccount, the "Non-refundable foreign tax deducted" field should be the sum of those capped amounts per country. Dublin67 was right to correct the earlier suggestion of just entering the full €438.

The annoying thing with DEGIRO is their annual statement shows you the gross and WHT per country, but doesn't tell you the treaty rate or do the capping for you. You end up Googling treaty rates for half a dozen countries every year.

I built a withholding tax tracker into a CGT tool I'm working on. Covers 22 countries with Irish treaty rates and flags where the broker has overwithheld versus the treaty rate. Full disclosure, it's my own project, still in beta. Free to try at quickcgt.ie, and if you've got real DEGIRO dividend data there's a beta application on the site for full access.
 
Recently a friend living in EU told me he has ryanair stocks on degiro and i think he said 25% dividend tax is withheld by ireland. He also has to pay tax where he is resident, but gets some credit for the tax withheld because of the double taxation treaty. Does it mean he may be able to claim back some of the withheld tax from ireland? Sorry I'm sketchy on the exact details, just wondering if he should look into it.
 
He'd need to check with his country's tax authorities about their double taxation policies/rules that apply to Irish dividends. Askaboutmoney probably isn't the best place for foreign jurisdiction tax advice.
taxation-customs.ec.europa.eu

Taxation of dividends received by individuals

How dividends are taxed in the EU.
taxation-customs.ec.europa.eu taxation-customs.ec.europa.eu
 
ClubMan said:
He'd need to check with his country's tax authorities about their double taxation policies/rules that apply to Irish dividends.
Click to expand...
Yes, understood and agree. My question however was, can a refund of some of the tax withheld in Ireland - if justified according to all relevant tax rules - be claimed from the Irish Revenue, in the same way comments in that this thread said it could be claimed from foreign tax authorities (but often not worthwhile for the sums involved)? I expect yes under EU rules.
 
Good point on the EU reclaim side. The Irish DWT rate on dividends is 25% but most EU treaty rates are lower, so your friend may be entitled to a partial refund from Revenue.
 
Barry_QuickCGT said:
The Irish DWT rate on dividends is 25% but most EU treaty rates are lower, so your friend may be entitled to a partial refund from Revenue.
Click to expand...
Irish companies can pay dividends to non-residents without application of the 25% DWT but only if the required form has been completed and submitted to the dividend paying agent in good time.

Exemptions for non-residents

This page outlines which non-residents are exempt from Dividend Withholding Tax
www.revenue.ie www.revenue.ie

However, if the exemption form was not submitted in time, then there is a refund process that the non-resident can initiate directly with Revenue, more information here:

Refunds for non-residents

How do non-resident persons claim a refund
www.revenue.ie www.revenue.ie
 
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