Thanks. For simplicity I am thinking it might be easier to go with a different bank.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."
Not only that, but you'd also be tax compliant and not filing a false return.I know it'd be better if the Irish govt got it all
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."
Is there any benefit to an Irish consumer in filling in the paperwork? In the end they pay 33% regardless?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%.
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.Is there any benefit to an Irish consumer in filling in the paperwork? In the end they pay 33% regardless?
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