EU Deposit Interest - Revenue Reporting

On Form 11 is anybody else seeing similar problems to last year reporting EU deposit interest amounts?


Looks like I'm getting charged tax at a rate of c 37% instead of DIRT at 33%


EDIT - should add I am NOT earning >5K in interest so I dont think the PRSI levy should be applied.
 
On Form 11, you can see the details of the tax calculation - any PRSI charged is shown separetly
 
@jpd yes I understand PRSI is shown separately. My point is there shouldnt be extra PRSI as I've not earned >5K in interest.
 
The exemption from PRSI is only if you have less than €5,000 and you submit a PAYE Income Tax return (Form 12)

Since you are submitting a Self-assessment tax return (Form 11) then you are liable for PRSI regardless of the amount.
 
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daheff said:
On Form 11
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daheff said:
My point is there shouldnt be extra PRSI as I've not earned >5K in interest.
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Corola said:
The exemption from PRSI is only if you have less than €5,000 and you submit a PAYE Income Tax return (Form 12)
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So, is there some other reason that you need to be self assessed?
I presume that there is if you have gone to the bother of registering for self assessment and filing a ROS/Form 11 return?
 
I have CGT, EU interest income and dividends. I dont think I can report them without using Form 11 (at least thats what revenue have told me).

Would seem to be unfair if you have to pay PRSI on interest income just cos you use Form 11. I know for 2023 I updated the amounts and advised revenue they calculated 41% on interest income instead of DIRT and they accepted my return.
 
Were you declaring ETF dividends/income? That is a reason to use Form 11, and they are taxed at 41% not DIRT.
 
It would be helpful if you indicated what you did as this might help someone with a similar question in the future
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The post on I figured it out was originally another question that I deleted as id figured out what was wrong. It was my error rather than Revenue, so don't want to confuse anyone by leaving it there.

My main query on form 11 vs form 12 remains. Revenue have not responded to me yet on why I am under F11 v F12
 
having submitted my return, i think its possibly correct now to be on F11. My interest + dividends for 2024 were just over 5K. A bit annoying though that this then causes an extra taxable amount.
 
Yes - and also the requirement to have paid preliminary tax on it during 2024 too.
I wonder how many people are charged penalities and interest for not having done this.
Non-compliance must be significant in this area.
 
Hi Guys
If your submitting a form 11 to Revenue that shows deposit income in 2024 is above €5,000 from banks in mainland Europe (non Irish) what tax rate rate you pay?
 
whiz said:
from banks in mainland Europe (non Irish)
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You need to be more specific as “mainland Europe” is meaningless in this context. The test is whether you receive interest from an account in another EU Member State or some other non EU country, and whether or not you submitted your return on time.

Revenue sets out the rate that applies in this appallingly poorly worded page

My interpretation is as follows:

If the deposit interest originates in Ireland, or in another EU member state and is returned on time, then the rate is 33%
If the deposit interest originates in another EU member state and is not reported on time, or originates outside the EU, the the rate is 40%

Revenue have put a lot of time and effort into making this into an unnecessarily complicate muddle and persist in confusing something that should be very simple to understand and comply with.
 
Freelance said:
If the deposit interest originates in another EU member state and is not reported on time, or originates outside the EU, the the rate is 40%
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That part is not correct. It depends if you are a standard or higher rate taxpayer as well.

Foreign deposit income

This page provides information on income tax on foreign-sourced deposit interest income.
www.revenue.ie www.revenue.ie

Non-EU sourced deposit interest including UK accounts, are taxed at the higher of the DIRT rate and your marginal rate of tax. If you are a standard rate taxpayer, your deposit interest is taxed at the DIRT rate. However, if you are a higher rate taxpayer, your interest will be taxed at 40%.
 
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PoundMan said:
Yes the figure is the same amount which I specified when completed the tax return. On my SOL, it says that I will pay Revenue back by a phased reduction of €105 per year in my tax credits over the next four years. Is this the best method of repayment or is there anything more financially optimal from a tax efficiency point of view? I'm assume it wouldn't be wise to pay the DIRT bill (€420) using savings.
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Corola said:
It's better to leave it as it is. With tax credits it's as if you're getting a four-year interest-free loan from Revenue, deducted evenly from your payslip each month. There would be no benefit to paying it off using savings.
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At the time I decided to go ahead with this phased approach to repayment over four years, but almost a year later I'm now wondering if it is possible to just pay the remainder of it off in full? I'd rather the DIRT liability was paid for out of my savings fund instead of effectively reducing my take-home pay to fund it. Plus what happens when I do my tax return again this year for 2024 and there will again be a liability for DIRT on EU Deposit Interest. If Revenue again suggested paying this back in a phased approach, I would again be further reducing my take-home pay. After a few years I would end up having very little tax credits left. I think it would be better to just pay the DIRT using a lump sum out of the existing savings pot.
 
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