I've just noticed this and wonder why the usual extra tax of 21% doesn't apply as it does to those paying tax at the highter rate; can anyone explain? Or can it be because the account is limited to savings of €300/month and only guarantees 6.6% for one year? AFAIK Credit Union Special Saving/Share Accounts are similarly treated when annual interest is less than ~ €4-500 p.a.
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- We will deduct Deposit Interest Retention Tax (DIRT) at the standard rate (at present 20%, but this may change), from all interest earned, and we will pay this directly to the Revenue Commissioners.
- You do not at present have to pay other Irish income tax on the interest, but you may be subject to PRSI/Health levy.