Non-Resident and DIRT and VAT

  • Thread starter dubinamerica
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dubinamerica

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Hi I am an Irish citizen living in the US the past few years. I have a credit union accoun in Ireland and my understanding is that DIRT is taken out of the interest earned at the end of the year.. does anyone know if I should have to pay this as I'm non-resident? Also for VAT for estate agent services (to lease a house to tenants in Dublin) - do I need to pay this also ? We declare all our income on the house in the States but I'm not sure if I'm paying taxes now that I don't need to . ANY info would be great. Thanks.
 
NON RESIDENT

As a GENUINE non resident you can claim exemption from DIRT . You need to provide the completed declaration form of non residence to the financial institution.

Your residency is irrelevant for the charge to vat on the estate agents services. The charge arises in ireland due to the property being loctaed in ireland,
 
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Thank you for the info. I've been living here for almost 4 years and plan on staying into early next year. Can I just show my tax returns as evidence of non-residency in Ireland ? Also - any idea if I can claim back DIRT that has been already paid ?
 
NON resident usa

You need a claim form 6166 from the US Internal revenue service to certify US residency.
Also the Dirt certs from the financial institution showing the dirt deducted.

You should be able to reclaim the DIRT from the revenue.

Probably worth ringing the revenue directly. There is a new time limit now for reclaims of tax of 4 years for claims made after Jan 1 2005. I presume this applies to DIRT but not sure.
 
CU

Note that first of all you should not have a CU account, as you would be very unlikely to fulfill the common bond requirement.

Also, most Cu accounts are shares, not deposits, so you would earn an annual dividend, not interest.
 
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Don't know what you mean about the common bond requirement - I had opened the account when I was resident in Ireland and it's still open though I'm living in the U.S. I'll check up on the CU website but I think it mentioned that DIRT can be deducted but it does also list my 'savings' as 'shares'.. I'll have to call them to see what exactly they do at the end of the year as they also give a rebate on interest paid on any loan.. Thanks for the pointers .
 
common bond

All the members of any CU share a common bond, e.g.

they all live in the same town

OR

they are all members of the same trade union, e.g. TUI CU

When you emigrated, the common bond ceased. Technically you should have closed your account. But I suppose it's no big deal.

If your savings are shares, which the first 20-25k of savings would be, then you will earn a dividend.

Typically, the div is paid gross.
 
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