Raisin Bank - Banco Português de Gestão

backofnet

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I am thinking about opening an account with the above mentioned bank because of 2 reasons, the interest rate and the fact that the account can terminated prematurely at any time. The withholding tax is 28%. I assume if you are a non resident you do not have to pay this tax? If so how do you make yourself exempt, is it by filling out some form and sending it to the bank. Anybody have any experience?
 
As per the "Additional product information":

"In Portugal, a withholding tax of 28% is withheld if you do not provide the tax form "21-RFI". The tax form is a standard form that Raisin will provide you with after opening an account, in the electronic mailbox of your online banking. Please submit the respective documents to your tax office 12 months (not earlier!) before the due date."
 
As per the "Additional product information":

"In Portugal, a withholding tax of 28% is withheld if you do not provide the tax form "21-RFI". The tax form is a standard form that Raisin will provide you with after opening an account, in the electronic mailbox of your online banking. Please submit the respective documents to your tax office 12 months (not earlier!) before the due date."
Thanks. For simplicity I am thinking it might be easier to go with a different bank.
 
The Portuguese bank also requires postal application so it's likely to take longer to open an account than those banks with online application. Younited was very fast - you would have to pay DIRT to Revenue of course but that seems quite straightforward.
 
If you're Irish resident, the dirt tax is 33% here,so I usually don't bother filling in these tax forms,and pay the balance of the tax in Ireland eg.5% in this case. I know it'd be better if the Irish govt got it all, but it's been very small amounts over last few years.
 
I assume they are declaring the gross interest and taxing that at Dirt tax rate (33%) and taking a deduction for WH deducted, do you have to claim back the foreign withholding tax and pay full amount to Revenue?
 
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I assume they are declaring yhe gross interest and taxing that at marginal tax rate and taking a deduction for WH deducted, do you have to claim back the foreign withholding tax and pay full amount to Revenue?
As per the "Additional product information":

"In Portugal, a withholding tax of 28% is withheld if you do not provide the tax form "21-RFI". The tax form is a standard form that Raisin will provide you with after opening an account, in the electronic mailbox of your online banking. Please submit the respective documents to your tax office 12 months (not earlier!) before the due date."
 
I saw that, but that doesn't mean you have to claim it back, surely you can be taxed on full amount in Ireland with a credit for tax withheld and pay difference to revenue, this has no additional cost to you,

I would think double tax agreement with Portugal and dance the Irish Dirt tax is greater than WHT in Portugal then your total tax would be 33%, 28% WHT and 5% yo revenue.

Obviously if WHT was greater than 33% then better to reclaim and pay fully in Ireland.
 
The full text on the Raisin Bank website says:
"In Portugal, a withholding tax of 28% is withheld, which will be reduced to 15% if the tax form "21-RFI" is submitted in time and is fully deductible in the context of a tax return if it is not refundable abroad. This may have been issued by your tax office a maximum of 12 months before the interest payment (due date)."

My understanding is that means if you fill out the "21-RFI" the deposit interest tax rate will be reduced to 15%. Further, because Ireland has a double taxation agreement with Portugal, you can deduct the 15% paid when calculating the 33% to be paid to the Revenue. i.e. pay 18%.
 
The full text on the Raisin Bank website says:
"In Portugal, a withholding tax of 28% is withheld, which will be reduced to 15% if the tax form "21-RFI" is submitted in time and is fully deductible in the context of a tax return if it is not refundable abroad. This may have been issued by your tax office a maximum of 12 months before the interest payment (due date)."

My understanding is that means if you fill out the "21-RFI" the deposit interest tax rate will be reduced to 15%. Further, because Ireland has a double taxation agreement with Portugal, you can deduct the 15% paid when calculating the 33% to be paid to the Revenue. i.e. pay 18%.
Is there any benefit to an Irish consumer in filling in the paperwork? In the end they pay 33% regardless?
 
Is there any benefit to an Irish consumer in filling in the paperwork? In the end they pay 33% regardless?
No direct benefit. You are paying 33% regardless but if I am going to pay it anyway I would rather pay it to the irish state.
 
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