Brendan Burgess
Founder
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(Thanks to Gordon Gekko for correcting an earlier version of this.)
When you get a dividend from a German company through your Irish stockbroker, you should get a dividend certificate as follows:
Gross dividend: €100
German tax deducted: €26.375
Net German dividend: €73.625
Encashment tax :€14.725 [ 20% of net German Dividend] (On some occasions, the broker did not deduct this tax.)
Net dividend: €58.90
You paid €26.375 in German withholding tax.
You are entitled to claim a credit for €15 in your Irish tax return.(15% of the dividend.)
You must claim the balance of €11.375 from the German tax authorities
On your Irish tax return
There is a box which is very misleading which says "amount of foreign tax deducted". You don't actually put in €26.29 . You put in only €15.
In a separate box, you put in the encashment tax of €14.74
To claim the German tax
See below for links and detailed instructions.
Send it to the Income Tax section of your own local Revenue District. ( There is no special office.)
They will certify it and send it back to you.
Send it to the German address on the form.
Notes
The copy certified correct by the authority should be forwarded by the claimant to the Bundesamt für Finanzen by the end of the fourth calendar year following that in which the dividends and/or interest have been received.
So for Dividends received in 2013, the claim must be submitted by the end of 2017.
Fill in your bank details as the money is transferred.
Make sure to sign it.
Keep copies of all the documentation - the dividend certs and the Revenue's certification of the claim in case the whole lot goes missing in the Irish Revenue or the German Revenue.
When you get a dividend from a German company through your Irish stockbroker, you should get a dividend certificate as follows:
Gross dividend: €100
German tax deducted: €26.375
Net German dividend: €73.625
Encashment tax :€14.725 [ 20% of net German Dividend] (On some occasions, the broker did not deduct this tax.)
Net dividend: €58.90
You paid €26.375 in German withholding tax.
You are entitled to claim a credit for €15 in your Irish tax return.(15% of the dividend.)
You must claim the balance of €11.375 from the German tax authorities
On your Irish tax return
There is a box which is very misleading which says "amount of foreign tax deducted". You don't actually put in €26.29 . You put in only €15.
In a separate box, you put in the encashment tax of €14.74
To claim the German tax
See below for links and detailed instructions.
Send it to the Income Tax section of your own local Revenue District. ( There is no special office.)
They will certify it and send it back to you.
Send it to the German address on the form.
Notes
The copy certified correct by the authority should be forwarded by the claimant to the Bundesamt für Finanzen by the end of the fourth calendar year following that in which the dividends and/or interest have been received.
So for Dividends received in 2013, the claim must be submitted by the end of 2017.
Fill in your bank details as the money is transferred.
Make sure to sign it.
Keep copies of all the documentation - the dividend certs and the Revenue's certification of the claim in case the whole lot goes missing in the Irish Revenue or the German Revenue.
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