BluOr Paying 4.21% via Raisin for 1 year & 3.85% for 5 years Direct

I've not had to phone revenue for a few years - but I've found them to often be useless unless you're asking a question they deal with every day.

If you've over 5k in non-paye income I think you'll be filling a form 11, that means you put in your various incomes and you click calculate to work out much you owe them or vice versa.

My worry would be doing a tax return and foreign deposit interest would automatically trigger
a) 33% DIRT
b) 4% PRSI ( not sure about this - but I think PRSI can apply in some cases to deposit interest?)

Unless it's a simple click-here-click-here I don't want to be chasing Revenue for refunds due to deposit tax paid elsewhere.
 
ashambles said:
I've not had to phone revenue for a few years - but I've found them to often be useless unless you're asking a question they deal with every day.

If you've over 5k in non-paye income I think you'll be filling a form 11, that means you put in your various incomes and you click calculate to work out much you owe them or vice versa.

My worry would be doing a tax return and foreign deposit interest would automatically trigger
a) 33% DIRT
b) 4% PRSI ( not sure about this - but I think PRSI can apply in some cases to deposit interest?)

Unless it's a simple click-here-click-here I don't want to be chasing Revenue for refunds due to deposit tax paid elsewhere.
Click to expand...

Doing a tax return with foreign deposit interest does not trigger 4% PRSI just because you have foreign income.

Doing a tax return with foreign deposit interest does not mean you have to look for a refund (unless you have already paid over 33%) ... it is the other way around, you are paying the Revenue 33% tax less any tax already paid and it is straightforward.
 
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Lightning said:
Doing a tax return with foreign deposit interest does not trigger 4% PRSI.
Click to expand...

That is not always the case. If your taxable non-PAYE income for the year (which includes Foreign and Irish interest) is €5,000 or more, you must register for self-assessment and file a Form 11, and in addition to DIRT it will be liable for PRSI. (Usually 4%, unless under 16 or 66 and over)
 
Freelance said:
That is not always the case. If your taxable non-PAYE income for the year (which includes Foreign and Irish interest) is €5,000 or more, you must register for self-assessment and file a Form 11, and in addition to DIRT it will be liable for PRSI. (Usually 4%, unless under 16 or 66 and over)
Click to expand...

Yeah, absolutely, my point was that foreign deposit interest, in itself, does not trigger PRSI. What triggers PRSI is exceeding the 5k threshold regardless of whether it is foreign or domestic.
 
Here's the communication I got from Raisin early on in the year after opening a Privat Bank account. I would assume it's the same for Blu OR.

Dear Customer,In order to assist you in lowering your tax obligations we provide the following outline to obtain a Certificate of Tax Residence in Ireland.You can use this certificate to reduce the 19% withholding tax in the Slovak Republic to 0% and thus save taxes. To ensure a timely processing, please request the relevant documents from Revenue between three and six months before maturity of your term deposit. This certificate must be made available to Raisin between one year and no later than fourteen days before the maturity of the term deposit. Then, according the Convention between Ireland and the Slovak Republic for the avoidance of double taxation, no withholding tax will be levied. Customers with tax residence in Ireland proceed as follows:• In order to obtain the Tax Residence Certificate, you must submit a Letter of Residencerequest via ROS or myAccount on Revenue’s online service: https://www.revenue.ie/• Additional details regarding the myAccount service, including how to register can be foundhere: https://www.revenue.ie/en/online-services/services/register-for-an-onlineservice/register-for- myaccount.aspx• Once you are logged in to myAccount, you can find the Letter of Residence link in the “ManageMy Record” section. Complete the short application form including your e-mail address andthe relevant tax year. Make sure to select Slovak Republic from the “Jurisdiction” dropdown.• Your request should be processed by the Revenue authority within a few weeks and theLetter of Tax Residence will be sent to the e-mail address you have provided.• Upon receipt of the documents completed by the tax office, please forward them by e-mailto Raisin between one year and no later than fourteen days before the maturity of thedeposit to the following e-mail address: service@raisin.ie• We will take care of everything else for you and forward the documents to the Slovakianbank free of charge. Of course, we will inform you when they have been forwarded.
 
I checked this morning, it seems trivial on the form 11 (and 12) to declare tax withheld for EU deposits and they take it into account in the end calculation.

I also checked and from plugging in some values they automatically charge PRSI on any deposit interest declared in the Form 11 regardless of the amount, both for Irish and EU deposits.

Form 11s have been used in the past for employee share schemes so have a wider net than they probably should have - but I think you only need to ask them to unregister you to switch back to Form 12?
 
Deposit Interest does seem to trigger PRSI on Form 11, even if the deposit income is under 5k.

Is it calculated differently on Form 12?
 
Latvia charges 20% withholding tax on deposit interest which can be lower to 10% as a result of a double taxation agreement with Ireland. Can this 10% withholding tax be offset against DIRT?
 
I set up my account at the weekend and booked €5k against the 4.02%.
I saw it is now 4.21%.
So I booked another €5k.
Now it is displaying on the dashboard that I need to transfer €10k.
If I transfer the money I "booked" will it go to the higher or lower rate?

It does not seem possible to cancel my original booking

Account only active today, I have set my own IBAN, but want to be sure I get the higher rate before transferring.
 
AndroidMan said:
I set up my account at the weekend and booked €5k against the 4.02%.
I saw it is now 4.21%.
So I booked another €5k.
Now it is displaying on the dashboard that I need to transfer €10k.
If I transfer the money I "booked" will it go to the higher or lower rate?

It does not seem possible to cancel my original booking

Account only active today, I have set my own IBAN, but want to be sure I get the higher rate before transferring.
Click to expand...
If your talking about Raisin, then there is an option to cancel an application that in progress— it’s there somewhere because I used it also to cancel an application for 3.6% when I saw 4% arrive
 
8till8 said:
If your talking about Raisin, then there is an option to cancel an application that in progress— it’s there somewhere because I used it also to cancel an application for 3.6% when I saw 4% arrive
Click to expand...
Yes, Raisin.
And what you describe is what I am looking to do, but I cannot see where I can do this.
 
As long as the withholding tax is less than DIRT does it matter whether it's 10% or 20%? From my brief check with the Form 11 you tell Revenue how much withholding tax was paid and they calculate the difference you need to pay.

I'm not chasing up anyone for a better withholding tax if it makes no difference to me.
 
AndroidMan said:
I set up my account at the weekend and booked €5k against the 4.02%.
I saw it is now 4.21%.
So I booked another €5k.
Now it is displaying on the dashboard that I need to transfer €10k.
If I transfer the money I "booked" will it go to the higher or lower rate?

It does not seem possible to cancel my original booking

Account only active today, I have set my own IBAN, but want to be sure I get the higher rate before transferring.
Click to expand...

I had 20k booked against the 4% rate and by the time I transferred the money it updated automatically to 4.2%

Perhaps that relates to the timing of the order of the product but I ordered at 4% and lodged at 4.2%
 
As long as the withholding tax is less than DIRT does it matter whether it's 10% or 20%? From my brief check with the Form 11 you tell Revenue how much withholding tax was paid and they calculate the difference you need to pay.

I'm not chasing up anyone for a better withholding tax if it makes no difference to me.
Click to expand...
Wondering about this too, if you are not except from DIRT why would you care (becomes preferring your money to go to Irish rather than Latvian tax)?
 
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