Tax on interest on savings

[Hannah]

Can anyone help me please? We are considering moving to Ireland from the UK and I am trying to get my head around the tax issues etc.

If we earned around 22k in interest on savings from an Irish bank how much tax would we pay? I have used the EGrabe tax calculator and it seems to say nothing. Does this take into account that we would be taxed on interest at source by the bank, then having nothing else e.g. PRSI to pay?

Would we able to keep an UK bank account (higher interest) and get that income taxed in Ireland?

Any other help would be most appreciated!

Many thanks.

Hannah

 

[CCOVICH]

AFAIK, PAYE workers liability is satisfied by Deposit Interest Retention Tax (DIRT) which is deducted at source at the rate of 20% by the bank.

However, there was a discussion here before Xmas on whether or not Health Levy (2%) and PRSI (variable) needs to be paid. I'll try and root out a link later.

You are free to keep your UK bank account, buty you would of course be obliged to declare it to the (Irish) Revenue. The tax position would depend on the double tax agreement between the UK and Ireland. If UK DIRT is deducted I think that you are allowed a credit for tax paid against your Irish tax liability.

Although you are getting a 'higher' rate in the UK, is the advantage not eroded by the EUR/GBP exchange rate?