Raisin tax agreements

irishfinanceguy · 18 Jul 2023

Would anyone know how to confirm where there are tax agreements between EU states in relation to the collection of DIRT. On reading these tax agreements re double taxation are quite wordy from my pov, hard to know for sure what they mean.

My understanding for example is that Latvia does not have a double taxation agreement with Ireland on dirt. I would appreciate if others could share insight.
Essentially which countries on raisin are suitable for us irish, including things like withholding tax.
Are Italy and France banks fine to deposit savings in and avoid double taxation and withholding tax?

Freelance · 19 Jul 2023

You should find everything you need in the Product Information Sheets on the Raisin.ie website.

For example, if you look at a Banco Português de Gestão offer, click on offer details, scroll down and download the Product Information Sheet, in section 3 Tax, it tells you (I'm summarising): Portugese Withholding Tax is 28%. If you complete the supplied tax form "21-RFI" the withholding tax for Irish clients is 15% but is fully creditable on a tax return

Likewise you will see that the Product Information Sheet for Younited tells you that "In France, no withholding tax is levied on interest income for persons with permanent residence abroad."

These are Raisin's interpretation of the tax situation and they will probably cover themselves with a get out clause, but it beats reading and interpreting Double Taxation Agreements and is good enough for me.

irishfinanceguy · 19 Jul 2023

Freelance said:
You should find everything you need in the Product Information Sheets on the Raisin.ie website.

For example, if you look at a Banco Português de Gestão offer, click on offer details, scroll down and download the Product Information Sheet, in section 3 Tax, it tells you (I'm summarising): Portugese Withholding Tax is 28%. If you complete the supplied tax form "21-RFI" the withholding tax for Irish clients is 15% but is fully creditable on a tax return

Likewise you will see that the Product Information Sheet for Younited tells you that "In France, no withholding tax is levied on interest income for persons with permanent residence abroad."

These are Raisin's interpretation of the tax situation and they will probably cover themselves with a get out clause, but it beats reading and interpreting Double Taxation Agreements and is good enough for me.

I read a a thread in boards.ie, where someone said they had to pay dirt in Latvia and Ireland, this is my concern. It clearly wants clear enough for them
I agree the withholding tax seems more clearcut

Freelance · 19 Jul 2023

IN the case of BluOR Bank, the only Latvian bank currently active on Raisin.ie, the Product Information Sheet in section 3 gives the specific instructions on Taxation:

As a private investor, you are subject to taxation of your interest income in your country of tax residence. The interest income must be stated in your tax return. All required documents should be provided on time.

In Latvia, a withholding tax of 20% is withheld on your interest income unless you provide a residence certificate. The form is a standard form that we will provide to you after you open an account, including instructions on how to complete it in online banking. Please submit the relevant documents to your tax office 12 months before the due date to allow plenty of time for the documents to be returned.

No later than four weeks before the interest payment (i.e. before the due date), you must send by post the original form to Raisin and we will then forward it to the bank for you.

The Raisin address:

Raisin
P.O. Box 13 01 51 13601 Berlin Germany

In this case, the withholding tax is 10%, but it is fully deductible if it is not refundable abroad.

The interest payment and the withholding tax deduction are made once at the end of the term of the investment.

You cannot submit an exemption order for investments abroad. You are required to include foreign interest income in the tax return. Additional tax information can be found on our website: raisin.ie/tax

Please note that these forms are valid for 5 years and the specific tax treatment depends on your personal circumstances and that there may also be changes in the tax treatment in the future. For individual clarification of tax issues, please consult your tax advisor.

So it appears correct that you will pay tax in both jurisdictions; 10% in Latvia and 23% in Ireland. You could pay more if you don't follow the above instructions to the letter. This is one of the reasons I opted for Younited (France) where there is no withholding tax, so none of this additional paperwork, and I'll simply pay 33% DIRT in Ireland.

There is a good summary here https://www.raisin.ie/tax/

Raisin tax agreements

irishfinanceguy

Registered User

Freelance

Key Post author

irishfinanceguy

Registered User

Freelance

Key Post author

Raisin tax agreements

irishfinanceguy

Registered User

Freelance

Key Post author

irishfinanceguy

Registered User

Freelance

Key Post author

Privacy & Transparency

Privacy & Transparency