Tax on foreign US dividends

M

Mikefromcork

Registered User
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Hi All
I have had a look at the tax treatment of foreign dividends and I must admit I am still a little confused. I used to have an accountant do it for me but I am down to very little dividends per year now so it doesn’t seem worth it. An example includes:
Gross dividend in Euro €98.22
Foreign tax deducted at 15%. €14.73
Amount receivables in Ireland €83.49
Encashment tax deducted at 20% €16.70
Net dividend €66.79
I get 4 of these dividends each year varying from €60 to €90 each time net.
I am a PAYE employee.
Thanks for the help in advance.
Best wishes
Mike
 
Where do these dividend originate - the tax treatment is different depending on the source?

Not sure why encashment tax is deducted - who is deducting this?
 
The shares originate in the US and are a US listed company. Not sure who takes the encashment tax. I just get the net amount. I get a dividend cert with the above info and the net amount paid into my bank account in Ireland.
 
When you report the income using Form 11 or 12 using ROS or maybe even on myAccount, and you will get credit for all the tax paid - ie 15% in US and the 20% in Ireland

Then depending on your marginal rate of tax, you may get a small refund - either in cash or as an increase in your tax credits - or you may owe a small amount more
 
Not sure who takes the encashment tax. I just get the net amount
jpd said:
When you report the income using Form 11 or 12 using ROS or maybe even on myAccount, and you will get credit for all the tax paid - ie 15% in US and the 20% in Ireland

Then depending on your marginal rate of tax, you may get a small refund - either in cash or as an increase in your tax credits - or you may owe a small amount more
Click to expand...

I pay the higher amount of tax.
 
Then you are due to pay 40% tax + PRSI (4?%) + USC (4.5% or maybe 8%) on the dividend income ( € 47.46 or 51.07) and the tax deducted by the Americans (€ 14.73) and the Irish broker who deducted the Encashment tax (€ 16.70) will be taken into account leaving you owing € 16.03 or € 19.64
 
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