EU Deposit Interest - Revenue Reporting

Interesting that the tax manual says that EU/EEA deposit interest is taxed at the DIRT rate. I recall previous threads here saying that it was only EU interest. In particular, there was a Norwegian bank offering from Raisin and the view was that the deposit interest would be taxed at 40% as Norway wasn't in the EU.
 
@ Persius - As I understand it, Norway doesn't impose a WHT on its deposit savings. Nonetheless, WHT of 33% will be levied on the interest by the Revenue (Ireland) when it's declared. I'm curious to know why it would be 40% in lieu of 33%? I could be wrong, but it's my belief that 40% applies to certain types of investments, not savings accounts?
 
Cooler_box said:
I'm curious to know why it would be 40% in lieu of 33%?
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Maybe @Persius is assuming a high rate taxpayer who is liable for 40% on any additional income and a situation in which deposit interest is subject to income tax rather that DIRT - at source or via tax return?
Cooler_box said:
I could be wrong, but it's my belief that 40% applies to certain types of investments, not savings accounts?
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You mean the 41% deemed disposal and/or exit tax charged on the likes of ETFS/UCITS etc.?
 
It's 40% for non-EU interest (or non-EEA according to the new TDM) for higher rate taxpayers

or

EU interest not returned in a timely manner.

EU Deposit Interest - Revenue Reporting

Thank you - I will attach that, and a few other links that were put here if I can find again. Revenue person was very definite that EU interest would be charged as INCOME, just like stocks, crypto etc. Super nice person. Not at all condescending. This phone call was as a result of sending email...
www.askaboutmoney.com

Norway is non-EU but is EEA which is where the confusion is arising because revenue.ie and gov.ie are not aligned with the new Tax and Duty Manual.
 
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Irish Revenue does not apply Withholding Tax (which I presume is what you mean by WHT) to foreign deposit income payable to Irish tax payers.
Deposit Interest arising overseas is taxed as follows by Irish Revenue:
  • Where the source of the deposit interest is within the EU/EEA and where DIRT has not already been applied and where the deposit interest is correctly included in a return that is filed in a timely manner, the deposit interest income will be taxed at the DIRT rate in force at the time the interest was paid (i.e. 33%).
  • Where the source of the deposit interest is outside the EU/EEA (e.g. UK, USA, etc) and where the deposit interest is included in a return that is filed on time and where the tax payer is a standard rate (20%) taxpayer, the deposit interest is taxed at the DIRT rate (33%)
  • Where the source of the deposit interest is outside the EU/EEA (e.g. UK, USA, etc) and where the tax payer is a higher rate (40%) taxpayer or where the deposit interest is not included in a return that is filed on time, the deposit interest will be subject to a higher rate of tax (i.e. 40%).
USC does not apply. PRSI may apply.
 
Coldwarrior said:
"PRSI may apply" is stated a lot in that tax manual, but I don't see any examples where it spells out when PRSI applies and at what rate. Any know?
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In simple terms, if you return your EU/EEA/Foreign deposit interest using form 12 it will not be liable to PRSI. If you return it using a form 11 then it will be liable for PRSI, however age exemptions could apply.
 
Freelance said:
if you return your EU/EEA/Foreign deposit interest using form 12 it will not be liable to PRSI. If you return it using a form 11 then it will be liable for PRSI
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I presume that this is equivalent to under €5K deposit interest cash can be reported via form 12/myAccount and more than that must be reported via form 11/self assessment/ROS?
 
Hi all,

I have amended Income Tax Return for 2024 few weeks ago with:

and received PAYE/USC STATEMENT OF LIABILITY FOR THE TAX YEAR 2024 but I can't find how much was or will be taxed for it (should be 33%).

Is this something that is still to be issued ?

My miss has this completed at same time with smaller amount of declared deposit and has this in panel 4 of Statement of liability.
Below snip is her information:





Thanks for all help and clarification.
 
ClubMan said:
I presume that this is equivalent to under €5K deposit interest cash can be reported via form 12/myAccount and more than that must be reported via form 11/self assessment/ROS?
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Similar but not the same thing. There are a myriad of reasons why you might be required to report using form 11, and so it is possible that you could report say €3,000 EU deposit interest using Form 11 rather than Form 12 if required to complete Form 11 for other reasons.
 
DujeDuje said:
I can't find how much was or will be taxed for it (should be 33%).
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If it's added correctly it will say "Charged as follows 2,077 @ 33% = 685" at the top of the first page.

DujeDuje said:
My miss has this completed at same time with smaller amount of declared deposit and has this in panel 4 of Statement of liability.
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Is she declaring EU deposit interest as well? It has been logged here as Irish deposit interest as she has received a tax credit for DIRT.

That's the wrong way round: Revenue has refunded tax that she hasn't paid yet.
 
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We have both declared same Form 12, just with the different amounts, mine was 2,077 and hers 1,191 as per below:


Below are snips of mine Statement with no word of DIRT or33% tax:





Hers is different and is confusing to me, says she gets charged and on below panel she will get credited:



Thank you in advance for all the help
 
Both have the wrong amount of tax. Yours is too high, hers is too low.

Yours has been added as Other Foreign Income and charged Income tax @ 40% + USC @ 4%. You can write a message to Revenue through your myAccount and explain EU deposit interest is charged at 33%.

EU Deposit Interest - Revenue Reporting

I haven't given up and I've found a more clear summary of how deposits from EU should be taxed. I can't include links (not enough comments in askaboutmoney) but you can find searching for "5-taxation-investment-products" in google and find a gov.ie page. I am going to send this to the Revenue...
www.askaboutmoney.com

Hers has been added as Irish Deposit Interest Received and charged @ 33%, but then refunded as a DIRT tax credit that isn't available for EU deposit interest because the interest was paid to her without any DIRT tax deducted. In effect she paid no tax on this.
 
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Corola said:
If you are using Form 11 PRSI will apply, if you are using Form 12 it will not.
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I presume it does not apply to the over 70s, regardless of which form they use?
Corola said:
Form 11 is for "chargeable persons" who are then liable to pay additional PRSI compared to non-chargeable persons.
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"chargeable persons" being anyone, regardless of age including the over 70s and retired folks still earning over €5000 in income?
 
bigcity22 said:
I’ve recently had issues with Irish Revenue returning a withholding tax form to me incorrectly signed, they’ve been getting on my nerves as of late
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I sent them WHT from Rietumu Bank to sign and stamp, together with the instructions from Rietumu stipulating the originals had to be returned and that no copies would be accepted. To NO avail. Revenue still returned a scanned copy of the original!
 
Cooler_box said:
I presume it does not apply to the over 70s, regardless of which form they use?
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Correct. PRSI does not apply to those who are 70 and over, and those who are 66 and over and in receipt of the State Pension Contributory. This is a general PRSI exemption applying this those in these age categories, not limited to or directly related to Deposit Income.

Cooler_box said:
"chargeable persons" being anyone, regardless of age including the over 70s and retired folks still earning over €5000 in income?
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"Chargable Person" is anyone who is required to self-assess for Income tax purposes. If you only have PAYE income, you do not need to self-assess your tax and you are therefore not a chargeable person. If you have PAYE income but you also have income from non-PAYE sources, you must make a tax return under self-assessment if the non-PAYE income amounts to:

  • Taxable net income (after losses, capital allowances and other reliefs) of €5,000 or more in a year.
or
  • Total gross income of €30,000 or more in a year. This applies even if you do not owe any tax on this income because it is reduced by losses, capital allowances or other tax reliefs.
If you have to self-assess your tax, this is known as being a chargeable person.

This page explains it in more detail.
 
PIC16f84 said:
if this is not sorted out we should escalate this to the tax appeals commission as they keep perseverating on treating this as foreign income for everybody
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Excellent idea. It anything, it will prompt Revenue to get their act together. The appeal will have more impact if submitted as a signed petition by as many disgruntled tax payers as possible, rather than individually. No one should have to pay more taxes than is due.
 
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