What is clear:
- Polish deposit interest tax is 19%.
- Polish deposit interest tax is reduced to 10% for non-Polish residents once documentation is supplied to the bank.
- The deposit interest earned needs to be declared with the Irish Revenue.
- There is a double taxation agreement in place between Ireland and Poland.
- The deposit interest is earned in the EU. An EU resident should not be taxed twice on EU income.
What is a little unclear (hence, the word "may"):
- I'm told that the Irish Revenue give either a tax deduction or a tax credit for the 10% tax already paid. Can anyone confirm the Revenue's approach?
With regard to return for 1 year term deposits:
- Alior Bank pay 1.60% AER fixed.
- The next best is 1.10% AER fixed with KBC (and a current account required).
- A massive difference of around 33% more interest earned with Alior Bank.
Is the tax situation clarified? Best buys thread says following:
"Tax: Irish tax residents need to provide documentation proving Irish tax residence to Alior Bank in order to reduce the Polish deposit interest tax from 19% to 10%. Irish tax residence also need to declare deposit interest earned with the Revenue and may be entitled to a tax deduction/credit for the 10% Polish deposit interest tax applied."
I dont like that "may" be entitled to a refund. We could end up paying 51% DIRT if Revenue decide not to give a credit! (or worse 60% if both the Poles and Revenue dont play ball). Sounds fairly risky for a couple of extra hundreths of a percent?
where would I get one of those tax residency certs ?
if they do play ball how much is the interest ?
sounds like I pay 10% DIRT in poland to the polish government
whats the situation in ireland do I have to pay the irish government tax ?, sounds like I shouldn't
If you would like to open a term deposit with Alior Bank the changes will be effective as of Monday, May 16th. The order must be completed by Thursday, May 12th (by 12:00 CET). By Tuesday, May 17th the money has to have arrived on your Raisin Transaction Account and the account opening form must be submitted.
For J&T Banka the order must be completed by Friday, May 13th (by 12:00 CET) and the money has to arrive on the Raisin Transaction Account by Tuesday, May 17th. J&T Banka interest rates were among the highest with up to 2.2%, so take advantage of these rates before it's too late!
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