Tax on Deposits

MTB_FS

Registered User
Messages
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Hi All,

Lets say I invest into one of the many mentioned deposits on this website where DIRT is not deducted at source. Lets say I am on the highest rate of income tax 50%+.

If I declare the interest in my tax return and pay the DIRT @ 33%, does this classify as income and do I owe additional taxes to bring me up to 50% + (USC,PRSI & Income Tax)

Or is the payment of DIRT kept separate to my income tax return. I will get the accountant to complete at the end of the year, but want to clarify before I look further into the any deposits outside of Ireland where DIRT is not deducted at source.

Many Thanks
 
Deposit interest is subject to DIRT and possibly PRSI but not income tax or USC.
Unless you're running a business or have particularly complicated finances do you really need an accountant to file your taxes for you?
 
Assuming interest from an EU source:

Taxation
EU deposit interest received by individuals who are liable to income tax in Ireland from banks, building societies, etc. in EU countries will be subject to tax at the same rate as deposit interest received by individuals from lending institutions in Ireland, currently 33%.

If you are a 'chargeable person' there will be 4% PRSI due in addition to tax @ 33%.

Reporting
Insert the amount of interest received (and any credit for foreign tax deducted if applicable) on Line 304 of your tax return:

 
Assuming interest from an EU source:

Taxation
EU deposit interest received by individuals who are liable to income tax in Ireland from banks, building societies, etc. in EU countries will be subject to tax at the same rate as deposit interest received by individuals from lending institutions in Ireland, currently 33%.

If you are a 'chargeable person' there will be 4% PRSI due in addition to tax @ 33%.

Reporting
Insert the amount of interest received (and any credit for foreign tax deducted if applicable) on Line 304 of your tax return:

If your not a chargeable person. It's very easy to declare interest in my account at end of the year.
 
I find it difficult to work out the answer to questions like this because of the way Form 11 is written. At one time I used to have to submit tax returns in America, and, although sometimes complicated, I used to appreciate how it was possible to work out the effect something would have on your tax. The form has instructions such as "add the number on line A to the number on line B and enter the result here", so you can follow things through to the final result. As far as I can tell Form 11 isn't like that, and the guidance document for it also doesn't seem to contain this information. It's nice that we can just enter the numbers and Revenue works out the final result for us, but I would like to also be able to work it out myself so that I could have a better understanding of how the final result is arrived at.
 
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