Future Direction of DIRT rates

[mcriot29]

Do you think rates will rise by 2016??
What about dirt rate do you think it could ever go back to say 30% say by 2020

 

[Lightning]

In 2014, given that PRSI will be applied to deposit interest, there might be no increase in DIRT in budget 2014. Maybe.

Visibility beyond that is limited. DIRT has done up significantly in recent years, on one token there might be only so much more the government can take with tax on deposit interest, on the other token it is an easy target.

 

[A_l_e_x]

They are trying to make saving unattractive, so I think the sky is the limit for DIRT rates

 

[callybags]

I can see it fairly soon being the case that deposit interest is treated the same as any other income for tax purposes and people will be taxed at their marginal rate.

I'm surprised it hasn't happened already.

 

[dub_nerd]

I can see it fairly soon being the case that deposit interest is treated the same as any other income for tax purposes and people will be taxed at their marginal rate.

I'm surprised it hasn't happened already.

One of the reasons is the administrative simplicity of being able to get the banks to deduct DIRT at source. Now that there will also be a new requirement for PAYE workers to pay PRSI on interest from 2014, it remains to be seen how that is implemented. If tens of thousands of additional people now have to file tax returns, then the administrative simplicity is gone, and you might see taxation on interest at the marginal rate. Of course, with the DIRT rate now at 33% plus PRSI, for some people income tax would now be a cheaper option.

 

[mcriot29]

Cant see it being charged at income tax rates it would have been talked about in budget if that was to be the case, i think it would be a far better way of doing it ,thats how goverment bonds are taxed