PRSI and Dirt that accrued during 2013 and paid in Jan 2014

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monagt

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If I take a one year deposit from now to next Jan, will PRSI be charged on ALL the DIRT or on the DIRT from Jan 1st 2014?

Has Revenue clarified this??
 
monagt said:
If I take a one year deposit from now to next Jan, will PRSI be charged on ALL the DIRT or on the DIRT from Jan 1st 2014?

Has Revenue clarified this??
Click to expand...

Looks like the answer is all the interest.

[broken link removed]

"Gross interest paid or credited in the year (not the interest accrued) is assessed, subject to a credit for tax deducted.​

Sections 256(2)(a) and 261(c) TCA 1997 refers. The interest is chargeable under Case IV of Schedule D. "
 
It would appear that people who invested in the past on multi year investments (3,4,5 year) will now have an extra 4% deducted as PRSI if the investment term finishes after Jan 2014.

There would have been an expectation that DIRT would change but the PRSI would have been unexpected.
 
If I open an Interest First deposit account with Permanent this month I get my interest upfront soon after opening with 33% deducted for DIRT, that means the interest earned will have to be reported in my tax return year 2013 so there is no liability to PRSI as it does not start until 1.1.14 and my interest was paid in 2013....fair assessment ?
 
I hope thats the case PaleRider - Just did the same myself in PTSB. That was the reason why I went for this Interest First Account, ( due to PRSI in 2014) - Plus a decent enough Interest rate ( 3.06 % ).

Tom.
 
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