Dividend Withholding Tax

[jambo.ie]

Hi,

Can I claim a refund of DWT if I have zero income tax liability for the year and can this be claimed retrospectively? I have only just noticed this on the dividend counterfoil.

I haven't had any tax liability for a few years because I was in full-time education and never earned above the tax theshold. Throughout this period I would have been receiving considerable dividends and paid considerable DWT on them.

Thanks,

Jambo.

 

[ClubMan]

Can I claim a refund of DWT if I have zero income tax liability for the year

Yes - as long as the dividend income added to any other income doesn't put you into the tax net.

and can this be claimed retrospectively?

Yes - by up to 4 tax years as with any such backdated claim.

Throughout this period I would have been receiving considerable dividends

Considerable enough to put you into the tax net?

I'm also not sure if dividend income over a certain limit (c. €3,175?) might give rise to a PRSI liability?

 

[jambo.ie]

Thanks for the reply. This is an unexpected boon.

I will have to check my income for the last four years to see whether the dividend income puts me over the tax threshold.

My dividend income would not have been over the PRSI threshold. I would have paid PRSI on other income in two 12 month periods in the last four years though.

 

[ClubMan]

I'm not sure if you can only backdate claims for a refund of DWT if you previously declared the dividends in question. Perhaps one of our regular tax experts can comment on this case?