Taxation on savings outside of Ireland?

G

Gerald Boss

Guest
Hello. I am considering opening a savings account outside of Ireland. In Ireland we pay 27% dirt on the interest earned which the bank takes care of but what is the procedure if a person has savings outside of Ireland, ie what sort of rate would I pay on the interest and how do I declare it?

Gerald
 
You are taxed at your marginal (highest) tax rate and you must declare the interest earned income on a Form 11 or Form 12
 
Thank you DB. So I would in fact pay more tax than if I left my money in Ireland in that case.
 
Deposit interest on accounts within the EU is taxed exactly in the same way as deposit accounts in Ireland ie the interest is taxed at the DIRT rate. Anything else would break EU competition rules.

The interest has to be declared using a Form 11 annually. In addition, the different tax authorities may swop information on deposit holders.
 
jpd said:
Deposit interest on accounts within the EU is taxed exactly in the same way as deposit accounts in Ireland ie the interest is taxed at the DIRT rate. Anything else would break EU competition rules.
Click to expand...

This is totally incorrect
 
 
 
Taxation on savings outside of Ireland

Is the Isle of Man considering to be in the EU? In other words, is bank interest charged at the usual DIRT rate or at the marginal tax rate?
 
meular said:
Is the Isle of Man considering to be in the EU? In other words, is bank interest charged at the usual DIRT rate or at the marginal tax rate?
Click to expand...

seems to be...
"The Island is a Crown Dependency that, through its ancient parliament, Tynwald, enjoys a high degree of domestic legislative and political autonomy. The United Kingdom Government is, by convention, responsible for the conduct of the external relations and defence of the Island. The Isle of Man's economic and social achievements would not have been possible without the stability that its constitution and institutions provide. Her Majesty the Queen as Lord of Mann is Head of State. Her personal representative on the Island is His Excellency the Lieutenant Governor, who is appointed by the Crown for a five-year term."

From Isleofman.com
 
I correct myself...
"The Isle of Man is not part of the European Union but it has a special, limited, relationship with the EU set out in Protocol 3 to the United Kingdom's Treaty of Accession." [broken link removed]
 
If you have a deposit in the UK with a fixed term deposit and the interest will be paid at the end of the term, say 4 years, do you calculate one year's interest each year and declare this or do you declare the lot at the end?
 
Your deposit interest is taxable in the year actually received.
Which can be unfortunate when the tax rate increases.
 
Note - 27% tax rate on EU interest only available if the individual's tax affairs are in order - so a late submission can lead to marginal tax rates applying. Also note that you are required to disclose the opening of the account.

Might be worth considering using Irish branch of UK bank instead.
 
Anyone know is it possible to declare interest earned on foreign deposits using PAYE online website? Or do you have to fill in a form and send to the Revenue?
 
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