tax on share dividends

[cochese]

I own shares in a few US multinationals upon which i receive dividends (very small amounts, usually less than €10 a go). When I receive my notification of dividends from my on-line broker I note that 15% tax is deducted in the US and a further 20% in Ireland. I understand that one is allowed to make a profit of €1000 from shares per year without having to pay tax so am I allowed claim back the tax from either jurisdiction?

I have been receiving these dividends for the past 5 years or so. Should I have been declaring these to revenue on some form or other (I assumed I wouldn't have to seeing as tax was being deducted and handed over to revenue by the broker) and if so do I have to do it on an annual basis or can I send in details covering the previous few years - somewhat similar to reclaimimg medical expenses?

 

[ClubMan]

I own shares in a few US multinationals upon which i receive dividends (very small amounts, usually less than €10 a go). When I receive my notification of dividends from my on-line broker I note that 15% tax is deducted in the US

You probably should have returned a US IRS W-8BEN form via your broker to avoid US witholding taxes.

US and a further 20% in Ireland.

This is probably Irish [broken link removed]. Dividend income is assessable for income tax at the shareholder's marginal rate. In the case of a 42% taxpayer paid dividends net of DWT s/he can claim a tax credit and just pay the 22% excess.

I understand that one is allowed to make a profit of €1000 from shares per year without having to pay tax

You are probably thinking of the annual CGT allowance of €1,270. This is irrelevant here since dividends are subject to income tax. The CGT allowance is only relevant when you sell shares for a gain and are calculating your CGT liability.

I have been receiving these dividends for the past 5 years or so. Should I have been declaring these to revenue on some form or other

Yes.

and if so do I have to do it on an annual basis or can I send in details covering the previous few years - somewhat similar to reclaimimg medical expenses?

You can and should inform Revenue of the outstanding tax liabilities in this area. They may just let you settle now without any interest or penalties especially if you come clean and the amounts are not huge. Once you have sorted out past years' affairs you should be declaring and paying tax on any dividends each tax year. Just write them a letter explaining the situation and outlining the figures involved.

 

[cochese]

nice one.