Foreign Tax on Dividends,

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B1e2r3n4a5rd

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When rewceive foreign Dividends there is witholding Tax deducted. Can I obtain the deduction back as I and resident in Ireland?
 
From my experience and this is tiny experience the withholding tax is deducted, then tax at the lowest rate in Ireland is deducted and that is the total tax you have paid. If this is the case for you then I think you are still liable for some tax. I hope someone else confirms all this!

For example if they are US shares and dividends are paid by an agent here, this might be how it works. Only 20 + 15 = 35% tax has been paid, but if you are taxed at the highest rate in Ireland you need to pay the 6%. (41 - 35)

Gross Dividend EUR 6.53
US Tax 15% 0.98
(Gross - US Tax) 5.55
Irish tax 20% 1.11
Net Dividend 4.44

 
Taxback.com in Dublin deal with this, they work with brokers, not sure if they deal direct but worth asking
 
Thank you MAJJ.

I believe you are correct i.e. you treat your dividend income as if there was no witholding tax at all ( include the groos anount) and you calculate the Tax due in Ireland. If there is Tax due you deduct the witholding tax already paid and pay the difference to Revenue.

However my question really refered to a situation where there was witholding tax deducted abroad and when I completed my returns I owed no tax at all even when I included the gross amount of dividend.

i.e. I had witholding tax deducted even when I owed no tax in that year. Can I get it back??
 
If the country of origin has a double taxation treay with Ireland, you can usually reclaim some of the withholding tax. The balance is allowed as a credit against the Irish tax due but only partially - it's too long to explain here. What country are you receiving dividends from ?
 
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