Any news on prsi

[mcriot29]

Any news on how prsi will be paid on deposit interest?

 

[Lightning]

No news. Budget day should reveal all.

Unless PRSI is charged at source on deposit interest income then it is difficult to see how the government will have an effective collection model.

 

[Greekwife]

They could force everyone with a Savings Account to do a Tax Return.

Will they abolish the threshold of €5,000 which you have to earn before PRSI is applied ?

Will they give some sort of PRSI Credit / Contribution to someone who is not currently paying PRSI ?

I am a SAHM with no Income (apart from Interest on Savings) and so currently do not pay PRSI.

 

[ashambles]

http://www.rte.ie/news/business/2013/1014/480304-budget-banks/

RTE have some speculation on the changes

It is also expected the Government will raise the DIRT tax on savings to the same level of income tax.
That would see the current rate of 33% for higher earners increase to 41%.

 

[mcriot29]

Why dont they charge rate of income tax on dirt but lower earners pay 20% dirt while higher 40 its like that in uk

 

[ashambles]

An option they might like is get the bank to charge 41% and then it's up to the individual(s) to get a refund by proving they should pay 20% or 0%.

A precedent of sorts would be tax on company share option schemes, this is taxed at 41% (or 52% to be more accurate) regardless of income and it's up to the individual to get approval from their tax office to pay at the standard rate.