Dividend Tax - Is It Treated As PAYE Income?

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Sparx123

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Hopefully this is the right forum for this...

Suppose a person wasn't employed (and wasn't trying to claim any benefits) but owned stocks or US-domiciled ETFs which provided passive income in the form of dividends. As far as I'm aware these dividends are taxed based on marginal tax rate + PRSI + USC.

If this income is the only income this person earns:
- Does payment of income tax entitle them to the PAYE tax credit as if the income had come from PAYE employment? Are there minimums required to avail of this credit?
- Does the payment of PRSI count as contribution towards their state pension? I presume there are minimums here (I read elsewhere that a yearly minimum of 500 Euro is required to fully cover this contribution).

Many Thanks,

Sparx
 
Sparx123 said:
- Does payment of income tax entitle them to the PAYE tax credit as if the income had come from PAYE employment? Are there minimums required to avail of this credit?
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No. They can only claim their personal tax credit. There's no equivalent of the PAYE credit for unearned income.

Sparx123 said:
- Does the payment of PRSI count as contribution towards their state pension?
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Yes. You only pay PRSI if total income is >5,000 per annum. And the minimum payment is 500.
 
I read in some place in Revenue's website that € 1.217,00 earned yearly with dividends is tax free. After that, you have to pay taxes as an income.
I am quite sure someone also posted in this forum.
 
Ualtar said:
I read in some place in Revenue's website that € 1.217,00 earned yearly with dividends is tax free. After that, you have to pay taxes as an income.
I am quite sure someone also posted in this forum.
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100% incorrect. That is capital gains allowance. Dividends are income = PAYE taxes I'm afraid.
 
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