Is DIRT all you pay

K

kilkerry

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Is the payment of DIRT on deposits the only tax liability you have, or are you also subject to income tax
 
You only have to pay DIRT on deposits, no income tax.

You have to include the gross interest received in your income tax returns if the revenue require you to make a return. They add it to the portion of your income taxed at the standard rate (also 20%) when they're calculating your tax liability. So the net result is you don't pay any more tax on it than the DIRT that's taken at source by the bank on behalf of the revenue.

Qualifying people [broken link removed]
 
Does the addition of Interest onto your income then push some of your PAYE taxed income then into the higher tax bracket effectively making the interest taxed at 41%?

Does the standard rate band of €34,000 include any income you recieve from deposits? Or are they completely different schedules?

Thanks.
 
Your standard rate band is increased from €34,000 by the amount of gross interest earned thus ensuring that you only pay DIRT tax of 20% and this does not affect your earned income.
 
depending on circumstances PRSI / health levy may become payable. I know the question was what tax will be payable but PRSI/HL could take another 5%.
 
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