EU Deposit Interest - Revenue Reporting

It depends on the fixed term account. In many, interest is not credited until the very end of the term. If you close the account early, no interest is paid.
 
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Freelance said:
The sentence quoted would be correct if you substituted "credits" for "pays"
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Ok yes, credits meaning paid in to the deposit account. Not paid out from the deposit account to your current account.
 
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So just to clarify one of my Raisin ( BFF bank) accounts was opened in October 2023 for a 3 month term. It paid interest ( not subject to withholding tax) on January 2024. I have no record or statement of accrued interest yet unpaid between October 2023 and 31/12/23.
Should I put the full interest in the 2024 tax return?
 
Pmc365 said:
So just to clarify one of my Raisin ( BFF bank) accounts was opened in October 2023 for a 3 month term. It paid interest ( not subject to withholding tax) on January 2024. I have no record or statement of accrued interest yet unpaid between October 2023 and 31/12/23.
Should I put the full interest in the 2024 tax return?
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Correct. In that case no interest was credited or paid in 2023 so there is no liability in that year. The full amount of interest is liable in 2024.
 
Freelance said:
Correct. In that case no interest was credited or paid in 2023 so there is no liability in that year. The full amount of interest is liable in 2024.
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Thanks for clarifying. I will deal with that interest next year ( 2024 tax return). We're talking about hundreds not thousands, tens of thousands or huge sums. All short term deposits 3 months or less. I doubt the Revenue would penalise me if I were to declare relatively small interest in 2024 tax year if others say it should be 2023 tax year provided I fully declared it.
Raisin or their associated banks do not state interest accrued and unpaid as at 31st December in a given year. I'm so honest I'm declaring the €200 refer a friend bonus I got from Raisin under any other income.
 
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I'll stick my neck out here by putting up two examples. One where interest is credited annually and the other where interest is credited at the end of the term. Both examples are a 3 year term deposit started in 1st July 2023:

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I have term accounts with Raisin (YouNited) and AIB and both operate on the basis of Example A. I have a number of other Term Deposits (PTSB, BOI and other Raisin Banks) however these are more recent so I am not yet sure how they operate where interest is concerned and the documentation is less than clear. It may appear unfair that you are liable for the DIRT on interest amounts credited when they cannot be accessed.

On any demand or term accounts of one year or less it is almost always the case that the interest is liable for tax in the year it is paid. (Apart from that PTSB "Interest First" yoke)
 
What is the section in ROS I input deposit interest from Raisin's associated EU Banks paid without deduction of withholding tax on Form 11?
 
Freelance said:
I'll stick my neck out here by putting up two examples. One where interest is credited annually and the other where interest is credited at the end of the term. Both examples are a 3 year term deposit started in 1st July 2023:

View attachment 9667

View attachment 9668

I have term accounts with Raisin (YouNited) and AIB and both operate on the basis of Example A. I have a number of other Term Deposits (PTSB, BOI and other Raisin Banks) however these are more recent so I am not yet sure how they operate where interest is concerned and the documentation is less than clear. It may appear unfair that you are liable for the DIRT on interest amounts credited when they cannot be accessed.

On any demand or term accounts of one year or less it is almost always the case that the interest is liable for tax in the year it is paid. (Apart from that PTSB "Interest First" yoke)
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Very organized. :cool:
 
Hi,

Trying to get organised for 2025.
Up until now EU Deposit Interest has not been an issue for me and my wife but will be this year.
We are both PAYE worker, jointly assessed, FORM 12 only.
We both have dividend income each year, circa €3,500 each, that in the past we've declared on FORM 12 and most years receive a refund when we get our SOLs. All hunky dory so far.

Now here's where I need a bit of advice. We both opened Raisin A/C's in 2024 that will yield about another €3,500 each in EU Deposit Interest in 2025 (not subject to any withholding tax).

1. For the EU Deposit Interest we will receive in 2025, do we have to pay the DIRT (which I'm assuming is 33%) direct to Revenue ourselves when we receive the interest or just declare it in our tax return in 2026 and they will balance it off against any refund we otherwise would've been due?
2. Will we now have to move to a FORM 11 return as our non-PAYE income will now be about €7k each when it used to be €3,500?

Thanks in advance
 
1. You can declare when you submit your tax return for 2025 so in 2026

2. Yes, you become Chargeable persons because your non-PAYE earnings are greater then € 5,000
 
I suppose that's pro-rata then for annual tax returns, 9 months at the lower rate and 3 months at the higher rate?

2024 PRSI 4.025%
2025 PRSI 4.125%
 
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For PAYE income it's obvious because each month has PRSI applied separately. You can see the 0.1% increase starting from October 2024 payslip.

For non-PAYE income it's not clear because you don't report in which months it was earned.
 
Is that PTSB ?

They report it to Revenue as interest received 31st Dec even though it doesn't appear in your account till 1st Jan

Is DIRT deducted at source?
 
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