Dirt to 41% + 4% PRSI = 45%; no USC

M

mcriot29

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If dirt is 41% for higher earners will that mean you tell your bank what rate you pay in income tax seems very messy
 
Is it possible to move savings to different European banks to get higher interest? This increase in DIRT hardly makes it worthwhile keeping in Irish banks.
 
If any interest/dividend is paid DIRT free, the amount received is liable for income tax purposes!
 
Yes Noonan confirmed the PRSI charge is coming in.

So 41% DIRT + typically 4% PRSI on top...
 
As there was a huge amount of confusion on this yesterday and as it has been clarified this morning, I have deleted the confusing posts and edited the heading.

Brendan
 
Did Noonan not say in the Dail yesterday that DIRT would be the final liability for Savings ? When did he clarify ?

How will the PRSI be collected ?
 
What a mess.

Yesterday, Noonan implied that DIRT was the only liability.

Today, Joan Burton said they did not know if PRSI would be applied and to "wait for the finance bill". However, today also, Noonan confirmed that PRSI would apply but gave no guidance as to how it would be collected. I assume Noonan, this time, is correct.

Can someone please ask Noonan / DoF how PRSI will be collected?

It would appear that NTMA State Savings products which are "completely tax free" are not subject to PRSI. However, have the NTMA come out and put this in writing?

I need to update the grossed up rates for term deposits to include PRSI which will make the State Savings products even more attractive.
 
Since Noonan announced this in the Budget for 2013 (Dec 2012) I have been trying to clarify this.

I emailed my local (FG) TD in Dec 2012. He emailed Noonan who replied in email to wait for the Finance Bill. After there was no mention in the Finance Bill I emailed again and got another reply from Noonan saying to wait for the legislation but there was no mention in any Legislation published. So I emailed again and was again told to wait for relevant legislation and in any event it was Joan Burton who dealt with PRSI and to direct queries there. At that point I gave up and decided to wait for this Budget and see if it was any clearer. Apparently not.
 
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When is the finance bill published? Isnt it around February or will it be earlier this time? I don't think we can wait for the finance bill.

If PRSI is to be deducted at source banks will need guidance asap as they will need to apply this to interest payments from 1 January 2014. Many systems etc will need to be updated on the banks side to deal with multiple PRSI rates and PRSI exemptions.
 
From todays irish times
Savers were hit very hard with dirt tax climbing by 8percent to 41 percent, while other tax changes mean anyone who makes a tax return to revenue for things including rent will have to pay prsi from next year

So it looks unless you make a tax return you wont pay prsi on savings
Not taking at source
 
Thanks for sharing that, hopefully The Irish Times researched that piece with the DoF/Revenue.

mcriot29 said:
So it looks unless you make a tax return you wont pay prsi on savings
Not taking at source
Click to expand...

But you would be breaking the law by not filing a tax return.
 
Myself and my spouse are both in receipt of paye pensions. However we also get a small UK pension and now have to make an annual return by 31st October. It won't be long before everybody will be required to do same.
"Dirt PRSI " will speed this up.
 
CiaranT said:
Yes, if (1) what the Irish Times said is accurate and (2) you have deposit income.
Click to expand...

Ugh, surely this is the point of PAYE, so we don't have to do this! In fairness what % of people will be bothered, or even know they have to do so?!
 
username123 said:
Ugh, surely this is the point of PAYE, so we don't have to do this! In fairness what % of people will be bothered, or even know they have to do so?!
Click to expand...

PAYE workers have always had to file a return if they have non-PAYE income.

A low percent will know how to do this.

Deduction at source @4%, with an electable claim back option, would yield a much higher return for the government.
 
Ciaran,
For a number of years I would go to tax office at beginning of year and give estimate of non PAYE income for the coming year and my certificate of tax free credits would be adjusted to ensure adequate tax was taken by PAYE to cover the non PAYE income.
At years end a PAYE balancing statement would adjust and overpayment would be refunded and underpayment would be taken back in the next year.
Only in the last two years have I had to fill in a return. There is a short form 12S I think it is that is suitable for simple cases and this would I think be the one to cover Dirt etc.
 
Wasn't DIRT originally introduced because people weren't inclined to file a tax return on deposit interest (or at least the primary reason)?
 
I have read that banks engaged in a massive lobbying campaign to prevent PRSI being deducted at source. This adds weight to the belief that PRSI will not be deducted at source.

MysticX said:
Wasn't DIRT originally introduced because people weren't inclined to file a tax return on deposit interest (or at least the primary reason)?
Click to expand...

Well, deduction at source was definitely introduced to deal with the fact that few people file a return.
 
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