Paying DIRT AND Income Tax on deposit Interest ???

M

manning9

Guest
Hello Group,

I am a sole trader and have some money on deposit. DIRT is automatically deducted at source, however Im told that the remaining interest is included in my income tax calculation ?

If this is correct, then it will be in the higher tax bracket, so ~40%. So a double taxation, DIRT + higher tax bracket. I feel positively ripped off !

Surely PAYE tax payers don't get double taxed like this ? How would the extra income from interest be taxed ?

Brgrds

M M
 
Deposit interest is standard rated. You do have to put it on your tax return (gross) however you get credit for the DIRT deducted which is the extent of your tax liability. However depending on other income there may be liability to PRSI/Health Levy/Income Levy which will be computed on filing the return.
 
As per the link above:

D.I.R.T. is a final liability for income tax purposes, i.e. the payment of retention tax at the standard rate by individuals liable to income tax at the higher rate is regarded as satisfying the individual’s full liability to this tax.
 
thanks everyone. looks like im going to have to get onto my accountant as Im pretty sure theyve included the net interest as income....
 
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