Overseas Euro account

[viz06]

Please bear with me if this is already asked and answered. Due to recent changes to DIRT and PRSI I am considering holding Euro deposit (no currency conversion in this case) in non EU country as very good return has been offered. Now I assume I need to inform Revenue and the tax (DIRT +PRSI) would more or less comes out the same as if held in ROI.

Am I missing anything here. Assuming I have to pay 41% + PRSI on any interest earned.

Thanks,
Viz

 

[Lightning]

Which bank are you opening a EUR account with that is a non-EU bank?

Non-EU deposit interest is taxed at the marginal rate of tax. However, the Finance Act 2013, has a separate provision, for non-EU deposit interest, where the person is a standard tax payer, and the interest was earned after 8 February 2012, which stipulates that the DIRT tax rate supersedes the standard tax rate. i.e. a standard taxpayer would need to pay 41% from 1 January 2014.

(1) You may need to pay deposit interest tax in the country that you open the deposit in or you may be exempt. It depends on the country.
(2) You then need to declare the deposit interest but you normally get a credit for the interest tax already paid.
(3) You pay the revenue the difference between what you have already paid and the 41% rate in 2014.
(4) You pay PRSI if you have 3,174 or more of total unearned income in the calendar year.