tax liability on irish bank account

[seosamh]

Hi,
I have just completed my form 11 as I have paye income and some rental income. I have money in savings in the bank of which the bank deducts DIRT. What are my tax liabilities on the interest I earn on the bank account after the DIRT has been deducted?

 

[suicra05]

tax on bank interest ?

Hi,

Anybody out there know the correct answer to this as I am in similar situation.

Regards,

Suicra05

 

[DB74]

It depends on how much interest it is

There will be no PAYE liability as the DIRT takes care of this but there may be PRSI & Income Levy liabilities, to a maximum of 6% of the Gross interest I think (4% PRSI plus 2% IL)

 

[ClubMan]

I'm pretty sure that I was hit for PRSI on deposit income a few years back when I did a ROS/Form11 return. I think it was before the income levy/USC so not sure what happens there. Ultimately I believe that if you are considered self assessed (even if the bulk of your income is PAYE) then you get stung for additional charges on deposit income even if DIRT was already deducted at source.