Irish Tax on US Dividends

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ebowdia

Registered User
Messages
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Hi guys, just looking for some guidance on the following example in relation to Dividends from a US company paid to me in Ireland.

Gross US dividend in Euro: €100
US tax deducted at 30%: €30 (W8-Ben not submitted)
Net Dividend Receipt in Ireland: €70
Irish Tax 20% of net receipt amount: €14
Total tax paid €30(US) + €14(Ire): €44
Net Dividend paid out: €56
I am a PAYE employee on the high rate of tax.

Does the fact that I paid 30% US tax rather than 15% (if I had submitted a W8-Ben) get factored in when calculating the Irish tax due?
If so, how much Irish tax do I owe?

Thanks.
 
ebowdia said:
Hi guys, just looking for some guidance on the following example in relation to Dividends from a US company paid to me in Ireland.

Gross US dividend in Euro: €100
US tax deducted at 30%: €30 (W8-Ben not submitted)
Net Dividend Receipt in Ireland: €70
Irish Tax 20% of net receipt amount: €14
Total tax paid €30(US) + €14(Ire): €44
Net Dividend paid out: €56
I am a PAYE employee on the high rate of tax.

Does the fact that I paid 30% US tax rather than 15% (if I had submitted a W8-Ben) get factored in when calculating the Irish tax due?
If so, how much Irish tax do I owe?

Thanks.
Click to expand...

No only 15% is factored in. If you are filing online yourself, enter the gross us dividend received and 15% will be built into the calculations. Input the Irish tax deducted on foreign dividends to get credit for that element. These are two separate entries on the online form.
 
Thanks. What's the best way to manage the issue so since 30% US tax has already been deducted? Is there any way to get that reflected and to get credit for it when filing with Revenue? Or is 15% US tax all that will be taken into account regardless?
 
You can reclaim the overpaid tax deducted by the US - so it can not be taken into account by the Revenue

If you do not wish to file a W8-BEN so that the US tax is limited to 15%, then that is your decision but you must live with the consequences of the extra tax paid
 
Thanks guys..... I better get the finger out so and submit a W8-Ben today to avoid paying 30% again.
 
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