Resident of Republic & Bank Account in North; Implications for DIRT Tax?

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apple1

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Folks,

Plan on opening a bank a/c in NI to put some sterling on deposit, though I am living in the Republic. I would appreciate if anybody could advise what the implications are, if any, from a DIRT tax perspective, i.e. will I be subject to DIRT tax (or the equivalent) in the North and also in the Republic? Thanks in advance, apple1
 
You wont be subject to DIRT as its as a southern tax. That however is irrelevant as your overall obligation to pay tax remains. You will have to declare it on a Form 12 at the end of the year.
 
If you pay the tax to the revenue on time, I think you can have it treated in Ireland under the DIRT rules, so you'll only pay 20%.
 
I suspect that it will be classed under EU Income and will be subject to irish income tax at your marginal rate.

Unless your marginal rate is 20%, you need to check whether you would be better off with a sterling deposit account in the Repbulic (I have one with Anglo-Irish) from which DIRT will be deducted at 20% and you have no further tax liability
 
From 1 January 2005 EU deposit interest will be subject to a standard rate of tax i.e. 20% (previously 42% for people with a marginal tax rate of 42%). To avail of this rate the tax due must be paid on time.
Click to expand...

I don't know the due date for payment of the tax. How the interest is taxed in the UK would then come under the double taxation treaty, I think its treated as exempt, so you could claim it back from the UK revenue.
 
Folks...just spoke with Revenue yesterday and they confirmed that I would only have liability for DIRT in one jurisdiction, i.e. if the DIRT equivalent was charged in the North, I would have no further liability in the ROI.
 
I have a savings account in the North and live in the Republic and the bank automatically take the tax off it think the rate is 20%
 
Apologies to jump it on someone else's tread but I am moving back from the UK and plan to leave money on deposit in the UK as the fx rates are so bad at the moment. Since I pay DIRT in the UK can I transfer that money back to Ireland at any time in the future or am I liable to ROI DIRTtax now...reading teh above it seems I'm not liable even though I will be living in the ROI
 
Correct kildon. That is my understanding having spoken to Irish Revenue yesterday. You are not penalised twice.
 
Hello, i wonder if anyone can help me out a little. i returned from the uk to live in the republic 12 years ago, i transfered my building society account to the north. I have been paying uk tax on any interest i recieved into this account. My husband remained living/working in the uk so we didnt think we had to tell the irish government this account existed, I was not working in the republic and did not claim any benefits from the irish government.
Now that i am in the process of seperating from my husband i am unaware weather or not i have to declare this account to the irish government and if so will i be subject to irish dirt over the past 12 years.

If anyone can help me out i would appriciate it.
 
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