Irish Dividend Withholding Tax - possible to get money back?

[k06351000]

Family member just just a dividend payment from CRH shares (first time since leaving the Irish stick exchange)

Notice that there is 25% of the dividend withheld.

First I presumed this was US DWT, however the note accompanying the check suggests the payment may be subject to 24% US DWT and /or 25% Irish DWT, suggesting that this amount is Irish DWT.

Is there any way to get this back? Only other income would be contributory state pension.

 

[Protocol]

Yes, in your normal Form 12 tax return.

People over 65/66 can earn up to 18k exempt from income tax, 36k married.

If all incomes add to less than 18k, then the tax due on all incomes is zero, and the DWT will be refunded.


However, I'm not sure about the US DWT.

 

[k06351000]

Thanks.

There is a form to fill up for US DWT - but this appears to be Irish DWT.

 

[Brendan Burgess]

If she filled in the US tax form when she got it from CRH, no US tax would have been deducted.

Brendan

 

[S class]

Is there any way to get this back? Only other income would be contributory state pension.

They should be able claim this back by completing a Revenue Form 54.

 

[Gordon Gekko]

It’s not DWT…it’s Encashment Tax.

 

[S class]

CRH is tax resident in Ireland ?

​

Encashment Tax​

Encashment Tax is a withholding tax deducted from income from public revenue dividends and dividends of a non-resident body. The individual who is responsible for the payment of income must deduct the tax.

 

[relax carry on]

They just complete their annual tax return via their Revenue myaccount declaring the dividends received along with any other income and fill in the box for Irish tax (encashment tax) deducted on foreign dividends. If they are due a refund, it will be refunded to them by Revenue.

 

[k06351000]

They just complete their annual tax return via their Revenue myaccount declaring the dividends received along with any other income and fill in the box for Irish tax (encashment tax) deducted on foreign dividends. If they are due a refund, it will be refunded to them by Revenue.

Ok that sounds doable, person is in their 90’s so anything more complicated probably just isn’t happening

 

[relax carry on]

Ok that sounds doable, person is in their 90’s so anything more complicated probably just isn’t happening

Revenue do make allowances for people unable to complete an online return. You can download and complete a PDF version of the 2023 Form 12 when it's available and fill in the applicable fields on the return. The online form via myaccount is straight forward for most people but the manual return is there for those unable to use the online platform. You'll have to wait until the tax year ends in any case to use either the online version or the manual one.

 

[basilbrush]

Irish tax (encashment tax) deducted on foreign dividends

These are not foreign dividends. CRH is still an Irish company. This is Irish Dividend Withholding Tax deducted from Irish dividends. If you submit Form 12, the Irish Dividends section has a field for "Gross amount of Dividends from Irish Resident Companies (from which Dividend Withholding Tax was deducted)", currently 23 (a)(i).