paying tax on divdends

Hi,

I'm a PAYE employee as well as being a company director. I'm due some dividends from the company, what form must I fill out to pay tax on this and do I need to let my employer know about it for tax purposes or are they treated separately?

The dividend payer will deduct 20% Dividend Withholding Tax at source on the dividend. If you are already filing tax returns as a director (Form 11) then you file the dividend details on that. If your marginal rate of tax is 20% then no additional tax will fall due but there may be PRSI/Levies. If your marginal rat of tax is 41% then you will owe the difference in the tax rates (21%) on the dividend and the PRSI/Levies as before. Your employer has no involvement in your returning the dividend details to Revenue.

Graham,

Do all irish companies have to deduct 20% Dividend Withholding Tax at source?
My OH received a dividend in late Dec - no paperwork at all. The dividend came from a co. that is exempt for tax purposes. He has no idea if he has to pay ncome tax on it, and if so how much.
He's tried to get details from the co. accountant about what he should be doing tax wise, but nothing yet.
We've no idea even where to look on the revenue website...
Any pointers?

Thanks

Thanks Graham. Can you elaborate on the following:

Graham_07 said:

The dividend payer will deduct 20% Dividend Withholding Tax at source on the dividend.

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Which form is used for this?

Graham_07 said:

If you are already filing tax returns as a director (Form 11) then you file the dividend details on that. If your marginal rate of tax is 20% then no additional tax will fall due but there may be PRSI/Levies. If your marginal rat of tax is 41% then you will owe the difference in the tax rates (21%) on the dividend and the PRSI/Levies as before. Your employer has no involvement in your returning the dividend details to Revenue.

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After declaring dividends on the form 11, will the revenue tell me what tax and PRSI/levies are due or do I need to calculate and submit this?

contractor said:

Which form is used for this?

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See [broken link removed] for full details on DWT. The company will return the DWT to Revenue and give the payee the details for their return.

contractor said:

After declaring dividends on the form 11, will the revenue tell me what tax and PRSI/levies are due or do I need to calculate and submit this?

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Revenue will issue a Notice of Assessment with full calculation. But if you are registered for ROS you can file direct there yourself and get a calculation before filing.

juke said:

Graham,

Do all irish companies have to deduct 20% Dividend Withholding Tax at source?
My OH received a dividend in late Dec - no paperwork at all. The dividend came from a co. that is exempt for tax purposes. He has no idea if he has to pay ncome tax on it, and if so how much.
He's tried to get details from the co. accountant about what he should be doing tax wise, but nothing yet.
We've no idea even where to look on the revenue website...
Any pointers?

Thanks

Click to expand...

All info [broken link removed]on Revenue site

Thanks for that!