Dirt tax 41%

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mcriot29

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Very unfair should be put at income tax rates
So a low income tax payer should pay 20%
 
Good point but very difficult to implement.

I pay 20% withholding tax on dividend income and the balance through my tax return.

Could something similar be done?
 
mcriot29 said:
Very unfair should be put at income tax rates
So a low income tax payer should pay 20%
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Then what is to stop a person making a gift to non-working or lower paid spouse of an amount to invest and claiming the 20% rate?

The new rate is a further disincentive to save which is what this Government wants. Ridiculous in my opinion...
 
tallpaul said:
Then what is to stop a person making a gift to non-working or lower paid spouse of an amount to invest and claiming the 20% rate?

The new rate is a further disincentive to save which is what this Government wants. Ridiculous in my opinion...
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I think it's the opposite, in that the government want people to spend, rather than save.
 
tallpaul said:
Then what is to stop a person making a gift to non-working or lower paid spouse of an amount to invest and claiming the 20% rate?

The new rate is a further disincentive to save which is what this Government wants. Ridiculous in my opinion...
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Is likely to backfire with me as will most likely try to save more to make up for the extra tax and theft of my pension fund :mad:
 
What it might do is make the State saving products more attractive so we could have a situation where there is a flow of money out of banks and into the NTMA. (I dont know what these currently offer). So either they will have to reduce the rate offered on these products or banks will have to increase their deposit rates to compensate which defeats the purpose of trying to make our banks profitable again. It also doesn't help the banks restructure their balance sheets by encouraging people not to save. People are not going to spend more because of this. It's like an idiots guide to economics.
 
rom the start of next year the DIRT (deposit interest retention tax) goes from 33pc to 41pc. And anyone who makes a tax return to Revenue will, from next year also have to pay PRSI.
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C Weston Indo

So some will not pay the PRSI? How is this so?
 
My understanding is that PRSI didn't change. So a PAYE worker making a tax return would not pay PRSI on their deposit %. Their liability would end at the 41%. The self employed would continue to pay the PRSI of 4% (.. hard to see the fairness in this btw).

I'm open to correction though
 
As per budget 2013, PRSI was due to be applied from 1 January 2014 to deposit interest.

As per Brendans post, in another thread, it appears that Noonan has confirmed that DIRT will now be the only deposit interest tax liability.

Hence, it appears that the plan to apply PRSI to deposit interest has been abandoned.
 
41% is a bridge too far for me I won't keep money on deposit anymore knowing 41% is going to the taxman plus for any large purchases I will think very carefully where I spend it but it certainly won't be this side of the border!

As for booze and fags well its cheaper to fly to Spain given each person has a personal allowance of 800 ciggies and I think 8 litre's of spirits that's if you can carry them either way it's looking more costs effective to fly out of here have a holiday and come back with plenty.
 
paulgreen said:
41% is a bridge too far for me I won't keep money on deposit anymore knowing 41% is going to the taxman plus for any large purchases I will think very carefully where I spend it but it certainly won't be this side of the border!
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The rest of your face will come to miss your nose after the spite-induced operation you propose... ;)
 
We've come a long way from the halcyon SSIA days!
Hard to know what to do with any Savings now -
Thankfully inflation is relatively low at present.
State savings were cut recently to help attract deposits
into banks, but this latest dirt increase is really making
any standad Savings product little better than a child's piggy
bank at the moment, so their plan to get people to spend
rather than save will probably work to some extent, but
will have the knock on effect of slowing down the banks
return to supporting economic recovery through lending.
 
Interest income is income, no different than any other, and therefore should be taxed at marginal tax rates . The banks should continue to collect the DIRT to ensure a catch at source, and any balance or overpayment should be handled through an annual tax return.
On that basis, anyone on 41% tax band should not be complaining, only those on the 20% band ( or below threshold) should be complaining because they are being penalised.
 
thieves!! so what do to with my rainy day money from jan 2014??? i'm not letting them get another 8%.. grrr..
 
I agree it's income like anything else but if it is your only income you can't apply the tax credits against it.
 
wbbs said:
I agree it's income like anything else but if it is your only income you can't apply the tax credits against it.
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exactly !
I will close out all my deposits before year end and only pay 33% these thieves have had as much as I intend to pay and if i'm cutting of my nose to spite my face then good
 
I think it is tough on people who rely on the income
generated from savings to supplement their income. There is no real incentive for savers to keep their savings in Ireland. Whether this latest increase in DIRT will spark another deposit flight remains to be seen.
 
jan said:
thieves!! so what do to with my rainy day money from jan 2014??? i'm not letting them get another 8%.. grrr..
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Hello,

Are the winnings (if any) on prize bonds, still tax free ? ... if so, they could be an option, given the particuly low deposit rates available these days, the loss of assured income might justify the gamble.

My feeling is that this increased tax is designed to help push down the net return on cash savings, to help encourage spending or debt reduction .... for most smaller depositers, while taxing the larger depositors at a rate to ensure no significant loss of total State income from DIRT over the next 12-months.
 
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