EU Deposit Interest - Revenue Reporting

Yes I see. The difference is €160 extra PRSI for the self-employed person. Revenue must have some operational reason then for the distinction by Form.

The worst case scenario is a Form 11 user with €4,999.99 of deposit interest pays an extra €200 in tax, not a huge injustice.
 
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torblednam said:
Everything you say there is spot on, but I think one potentially crucial thing is missing...

@daheff has said that they're filing via Form 11, but has also said that their non-PAYE income is less than 5,000. While you're absolutely right to tell them they'll be paying PRSI if they file a Form 11, the real question is, should they be filing a Form 11 at all... it's possible that their Income tax registration should be ceased and they file Form 12.
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sorry -can you explain why somebody (me?) would be told to use Form 11 vs Form 12?

2 income family. Other incomes are interest from savings, dividends from investments. No cgt gains this year (or last 3).
 
I'm looking at completing Form 12 for EU deposit income. It just has a section for "amount of EU deposit interest" with no verb - i.e. it doesn't say "amount of EU deposit interest earned" or "amount of EU deposit interest credited".
I will have some accounts that span two tax years - e.g. demand account where interest is calculated daily but credited less frequently, or term deposit where it's earned throughout the term but only credited at the end.
Can I report the amount of interest earned in tax year 1 in Form 12 for year 1 (even though it has not yet been credited), and report just interest earned in tax year 2 for that year? Otherwise, by pushing extra interest into tax year 2, I need to carefully consider the sums and terms for year 2 investements so as not to push the interest on those just over €5k triggering extra deductions.

The phrasing in the description of the liability that was previously posted (below) refers to "deposit interest arising" which reads to me as though it's the earning of the interest. But maybe not? I'd rather know at this stage so I can plan accordingly!

Can anyone say with certainty, or is it all just opinion?
Many thanks.

Bradipo said:
View attachment 8818
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thimble said:
I'm looking at completing Form 12 for EU deposit income. It just has a section for "amount of EU deposit interest" with no verb - i.e. it doesn't say "amount of EU deposit interest earned" or "amount of EU deposit interest credited".
I will have some accounts that span two tax years - e.g. demand account where interest is calculated daily but credited less frequently, or term deposit where it's earned throughout the term but only credited at the end.
Can I report the amount of interest earned in tax year 1 in Form 12 for year 1 (even though it has not yet been credited), and report just interest earned in tax year 2 for that year? Otherwise, by pushing extra interest into tax year 2, I need to carefully consider the sums and terms for year 2 investements so as not to push the interest on those just over €5k triggering extra deductions.

The phrasing in the description of the liability that was previously posted (below) refers to "deposit interest arising" which reads to me as though it's the earning of the interest. But maybe not? I'd rather know at this stage so I can plan accordingly!

Can anyone say with certainty, or is it all just opinion?
Many thanks.
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I believe they use this terminology to only put interest that has been paid to your bank account in scope. You may have (for example) a 6 month fixed deposit that pays after year end. You have earned some interest on this, but it wont be credited (paid) to your account until the next financial year.
 
Just as an fyi to all, somebody pointed me to this link from Mazars on when you become a chargeable person (ie have to use Form 11)

www.forvismazars.com

Do you need to submit an Income Tax/Capital Gains Tax return? - Forvis Mazars - Ireland

Throughout the year, we receive reminders through the national media that we may be required to file a tax return (Form 11) by 31 October. Many of us will dismiss the reminders on the basis that we do not fall into the category of individuals who are required to file the income tax/capital gains...
www.forvismazars.com www.forvismazars.com


Key takeway is this. So basically anybody with a foreign account is then a chargeable person -ie Form 11. Revenue may come calling on anybody who has submitted interest return on form 12.

Opened a foreign bank account in the tax year
Individuals should be aware that opening an online bank account that is regulated by a foreign authority could constitute the opening of a foreign bank account for Form 11 reporting purposes. The simple act of opening an online bank account such as the popular Revolut or N26, which is regulated by a foreign authority makes an Irish resident a chargeable person and therefore bound to file a Form 11, even if any income earned by them was taxed through the PAYE system.

Striking through all of this as it seems its not correct.
 
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daheff said:
The simple act of opening an online bank account such as the popular Revolut or N26, which is regulated by a foreign authority makes an Irish resident a chargeable person and therefore bound to file a Form 11
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Mazars are wrong, see the Revenue rules here:

EU Deposit Interest - Revenue Reporting

I thought revenue were usually pretty good and efficient but seeing these reports that people are getting charged the wrong tax is a little frustrating.
www.askaboutmoney.com
 
Hi all,

Back again with a query on whether the following from Revenue is correct on "With-holding tax". Do I have to wait until the end of the year?
Is that December 31st 2024? (I use revenue as a PAYE employee).

"If you have overpaid tax in another jurisdiction, such as Latvia, you will need to contact the relevant authority to reclaim the overpaid tax.​
​
When you are completing your 2024 Income Tax Return to declare the non PAYE income, a tax credit can be applied at that time for the non-refundable tax paid.​
​
Yours sincerely, XYZ ​
Service to Support Compliance"​
​
I had attached the Form from Raisin about with holding tax paid, and explained that I was too late to reclaim by the time the documentation arrived, had errors and was refused. ​
1723750410279.png
​
 
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The interest was paid in 2024
Tax was deducted at 25%
It is not clear who received this tax - I assume it is the foreign country

If it's an EU country, they are entitled to deduct 15% or € 119.87. This is a tax credit in Ireland
So you have to reclaim € 79.78 from them

DIRT is due at 33% or € 263.28
So you owe Revenue a further € 263.28 - € 119.87 or € 143.41
 
jpd said:
The interest was paid in 2024
Tax was deducted at 25%
It is not clear who received this tax - I assume it is the foreign country

If it's an EU country, they are entitled to deduct 15% or € 119.87. This is a tax credit in Ireland
So you have to reclaim € 79.78 from them

DIRT is due at 33% or € 263.28
So you owe Revenue a further € 263.28 - € 119.87 or € 143.41
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Yes it was BlurOr so Latvia. Thank you for doing the calculations. Really helps.
 
Do you know how to reclaim the €79.78 from Latvia / BlueOr I.e. overpayment of tax.
 
Pmc365 said:
Do you know how to reclaim the €79.78 from Latvia / BlueOr I.e. overpayment of tax.
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Yes, but I left it too late, by the time the Revenue form arrived.
Also for BPG, I got the form printed out, but there were errors on address and PPSN. The forms looks so unprofessional, that I wrote the correct details and signed beside the error. Posted off to Portugal. Long wait. Then response from Raisin that form wasn't acceptable as I had made changes.
I had to ask Raisin to fix the errors.

(Irish addresses often cause hassle for European banks. Have been trying to get N26 to fix mine for a long time. They need a house no. Apparently '0' is a way around.)

Now, I need to motivate myself to sort again before the deadline runs out for Portugal.
 
Pmc365 said:
Do you know how to reclaim the €79.78 from Latvia / BlueOr I.e. overpayment of tax.
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Actually, think you were asking about tax credit in Ireland.
All I have is this response from Revenue.
​
When you are completing your 2024 Income Tax Return to declare the non PAYE income, a tax credit can be applied at that time for the non-refundable tax paid.​
​
Yours sincerely, XYZ ​
Service to Support Compliance"​
 
ACER10 said:
Yes, but I left it too late, by the time the Revenue form arrived.
Also for BPG, I got the form printed out, but there were errors on address and PPSN. The forms looks so unprofessional, that I wrote the correct details and signed beside the error. Posted off to Portugal. Long wait. Then response from Raisin that form wasn't acceptable as I had made changes.
I had to ask Raisin to fix the errors.

(Irish addresses often cause hassle for European banks. Have been trying to get N26 to fix mine for a long time. They need a house no. Apparently '0' is a way around.)

Now, I need to motivate myself to sort again before the deadline runs out for Portugal.
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Wait, why did you post to Portugal? Should I be mailing the withholding tax there instead of to Raisin? I already posted mine...crap.

Unfortunately I can see why they rejected it if you modified it, since its an official tax form. I had an error on mine but they were able to reissue a corrected one.
 
bigcity22 said:
Wait, why did you post to Portugal? Should I be mailing the withholding tax there instead of to Raisin? I already posted mine...crap.

Unfortunately I can see why they rejected it if you modified it, since its an official tax form. I had an error on mine but they were able to reissue a corrected one.
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I'll check and get back to you .. maybe it was posted to Raisin and they sent to Portugal. I asked again recently and to be honest I still wasn't clear.

The mistakes were large ones. I should have noticed, but probably dyslexic. PPSN and address was all backwards, because of the way they formatted it.
 
ACER10 said:
I'll check and get back to you .. maybe it was posted to Raisin and they sent to Portugal. I asked again recently and to be honest I still wasn't clear.

The mistakes were large ones. I should have noticed, but probably dyslexic. PPSN and address was all backwards, because of the way they formatted it.
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Ok ..so I can take things very literal when trying to figure things out.

- Raisin had messaged first...
That Portugal had received my documentation and because of the editing I needed to resend unedited.
Then added "we kindly ask you to resend these forms to us without any additional modifications. You can find these forms in your Raisin Inbox under Documents. Please send this by post to us as well as the partner bank requires a physical form of the form.

I queried again on where I send it.. "to Portugal "as well" as to Raisin?"

"Thank you for your email. You will only need to send the document to us. We will then send it on to the partner bank in question. We apologize for the lack of clarity.
Please send the 21-RFI Form by post to the following address:
Raisin
PO Box 44 05 60
12005 Berlin
We will then pass this on to the partner bank and you will be notified wheny our physical tax document is processed by our team."

Sorry @bigcity22 for my lack of clarity
 
I delayed submitting my Income Tax Return (eForm 12) until this month in the expectation that Revenue would have got their act together. Unfortunately not, they are still screwing up. The EU Deposit Interest which I declared on my return has been coded as Other Foreign Income on my Statement of Liability and taxed as income at 40% with USC also charged.

Quite unbelievable that this is still happening after 10 months.

Why is this even happening ? Surely the coding of EU Deposit Interest to DIRT should be automatic and not subject to manual intervention/error ?

I’ve submitted this via “my enquiries” requesting a correction and updated SOL. If it isn’t sorted I think I will send it straight off to the Tax Appeal Commissioners.
 
Freelance said:
I delayed submitting my Income Tax Return (eForm 12) until this month in the expectation that Revenue would have got their act together. Unfortunately not, they are still screwing up. The EU Deposit Interest which I declared on my return has been coded as Other Foreign Income on my Statement of Liability and taxed as income at 40% with USC also charged.

Quite unbelievable that this is still happening after 10 months.

Why is this even happening ? Surely the coding of EU Deposit Interest to DIRT should be automatic and not subject to manual intervention/error ?

I’ve submitted this via “my enquiries” requesting a correction and updated SOL. If it isn’t sorted I think I will send it straight off to the Tax Appeal Commissioners.
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I had the same idea as you @Freelance in that I was holding off as late as possible in the hope that it would be sorted. Am I correct in thinking that I need to submit my online return for 2023 before November 1st?
 
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