I got interest from my Irish bank and DIRT is deducted by the bank. And Revenue says that I should declare any income I got as deposit interest before the tax deducted. So if I add the gross tax amount then eForm 11 charges me for 33% again (which is deducted by bank already). What would be the correct way to declare the amount before or after DIRT is paid on it without causing double tax payment.
DIRT declaration on Form 11
- Thread starter barbaros
- Start date
As you have already said that Revenue tell you, you need to enter the gross amount of interest paid to you - i.e. before deduction of DIRT. Your bank statement most likely details both the gross and net (after deduction of DIRT) amounts.
www.revenue.ie
Given the number of questions that you've been asking about the Form 11 return lately I would strongly urge you to think about getting professional assistance on filling it in. I think somebody else also suggested this, at least for the first year that you're doing it.
How do you declare DIRT?
How do customers submit Deposit Interest Retention Tax on their tax returns
www.revenue.ie
Well I found out the reason, when you declare your DIRT from gross amount, it charges you PRSI for it, it doesn't charge for 33% tax again. I already read that page but somehow didn't thought I would fit under "under some circumstances, PRSI would be charged from DIRT" condition.
Can't believe Revenue is charging PRSI for taxed interest.
Edit: PRSI is taken if DIRT amount is more if interest rate is more than 5k which doesn't apply to me, will call Revenue tomorrow to get more info about it.
Can't believe Revenue is charging PRSI for taxed interest.
Edit: PRSI is taken if DIRT amount is more if interest rate is more than 5k which doesn't apply to me, will call Revenue tomorrow to get more info about it.
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Why? PRSI is also charged on taxed income.
Anyway, since you are presumably a "chargeable person" for some other reason - hence the need to file a form 11 self assessment return - I'm not sure that the €5k deposit interest limit applies to you and you may well be liable for PRSI on your deposit interest income even if it's under €5k. The online form 11 normally works these things out correctly.