liam bourke
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so basically the only tax you should be paying is dirt at 33% once the savings you earn is less than 5000euro
EU Deposit Interest - Revenue Reporting
- Thread starter Corola
- Start date
irishfinanceguy
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Does anyone know if its in sterling as with lightyear is it 33% for eu tax as lightyear has Estonian licence or is it the higher dirt rate as non eu currency?
Stationfire
Registered User
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Still being handled incorrectly - confirmed submitted on PAYE myaccount online as eu deposit interest, and they processed it as “other foreign income” subjecting to PAYE and USC
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podgerodge
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Can askaboutmoney get some media attention on this? It's very newsworthy.
Just checking, Form 11 or Form 12? I thought the problem was limited to Form 12.
When I was testing my Form 11 it was calculating for me DIRT(+PRSI).
Stationfire
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PAYE Services “review your tax” which then submits a request for statement of liability. Clearly shows as eu deposit interest, they processed it, statement of liability included it as other foreign income charging PAYE, USC
If one earns under 5,000 non PAYE income but also has to file a form 11 - do they have to pay an additional 4% tax for PRSI on this income vs a form 12 user?
If so, why is this the case? How is that fair that you get a headache inducing form every year and also are taxed higher for that privilege?
If so, why is this the case? How is that fair that you get a headache inducing form every year and also are taxed higher for that privilege?
Yes, if declaring EU deposit interest on Form 11, you will be charged 4% PRSI. You would also be charged 4% PRSI on any Irish deposit interest. Not an issue for the last few years as there was no Irish deposit interest. But now the Irish banks are offering something. You're meant to declare it in Form 11, even though the DIRT has already been paid. But you will still have to pay the PRSI.
No idea why this is the case on Form 11, but not on Form 12. Search the forum for some explanations as to why it might be the case.
As shown in the link that @Corola posted here, Revenue say this:
Note the coloured text.
This suggests to me that if you are a Form 12 / My Account submitter, you pay your DIRT tax (where it wasn't deducted at source) via adjustments to the PAYE bands/credits.
But if you submit a Form 11, you pay at that time (with preliminary tax due the previous October) - and not via the PAYE system.
Hence the extra charge for PRSI there.
Personally, having been through the Form 11 pain once, it's not too bad once you are registered. And it's nice to be able to see the immediate outcome of calculations, and pay your liability there and then. Not keen on the tax being recouped through PAYE band adjustments.
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Hi @patjohn ... Were you able to fix this with revenue. I've made a phone call and a few attempts through My enquiries. Still no change and paid income tax on interest in 2023.
Ok.. so wondering is that a positive move. I explained the whole saga to lovely person on phone. Explained about N26, raisin, trade republic.. all the options for saving now. Really broke it down. Explained how EU deposit accounts are common now and will become more so.. and she checked revenue herself and agreed that there was an issue. She said, new scenario, so what they call 'ingredients' is now not there on the my account option but there for form 12.
REVENUE -
03/05/2024
"Apologies for the lateness of my reply.
Regarding your DIRT paid, in order for me to update your records correctly can you please submit a statement from the relevant authority (translated to English, if necessary) that confirms the total foreign income received and the total foreign tax paid in 2023. Any adjustments can then be made and an updated Statement of Liability issued to you. Kind regards, "
So I received interest from Trade Republic and Lightyear. DO you think a screenshot is enough?
Was the INTEREST - (a) FOREIGN (B) INCOME - I feel like I am going round in circles.
(C) total foreign tax paid in 2023. Didn't pay any tax...?
I have just figured out the LIGHTYEAR and TRADE REPUBLIC have downloadable STATEMENTS - so will attach that to Revenue MY ACCOUNT.
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That’s ridiculous. At this juncture somebody need to write to Niall Cody, the Chairman of the Board of the Revenue Commissioners and also the Accounting Officer for Revenue, detailing the issue and pointing out that this messing on Revenue’s part is unfair and unreasonable to Revenue’s clients and bringing Revenue and its systems into disrepute. A c.c. to the weasel of Merrion Street wouldn’t be any harm.
I detailed an issue in a letter to Josephine Feehily (then Revenue “Chairman”) with a cc to Noonan a decade ago and it was resolved post haste, having wasted months trying to deal directly with Revenue.
I detailed an issue in a letter to Josephine Feehily (then Revenue “Chairman”) with a cc to Noonan a decade ago and it was resolved post haste, having wasted months trying to deal directly with Revenue.
Hi. @ACER10 I submitted an enquiry via email. They came back to me after 6 weeks with resolution and I was issued with amended statement of liability.
That’s ridiculous. At this juncture somebody need to write to Niall Cody, the Chairman of the Bo.....
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@patjohn
Today I received a phone call from a very nice revenue person. She has asked me to send on the links to information that suggests that PAYE workers (so using my enquiries) should pay DIRT rate. She explained it was not revenue that collect Dirt from Irish banking deposit accounts and that EU interest earned IS INCOME and therefore will fall under the tax rate. She needs more info from me, and will help going forward.
So it seems possible that I will be paying 42% on EU interest.
I presume this has been posted already
What DIRT rate is applicable?
Deposit Interest Retention Tax is deducted from the interest paid on all deposit accounts held by Irish-resident individuals.
www.revenue.ie
Thank you - I will attach that, and a few other links that were put here if I can find again. Revenue person was very definite that EU interest would be charged as INCOME, just like stocks, crypto etc. Super nice person. Not at all condescending. This phone call was as a result of sending email to Mr. Cody.I presume this has been posted already
View attachment 8817
What DIRT rate is applicable?
Deposit Interest Retention Tax is deducted from the interest paid on all deposit accounts held by Irish-resident individuals.