Those with deposits in Raisin, Lightyear - anything to report, issues, all good, etc?

AndroidMan said:
I have the same issue. It has the BIC but no IBAN.
I tried resizing the browser etc.
I only opened the account yesterday, did the identification phone call, thats still showing as an outstanding item as well.

Maybe it just needs time.
Click to expand...
The IBAN is only displayed after all the identity checking has been completed. It can take up to 10 days (that was my experience).
 
There was 2FA on opening an account - a code was sent to my mobile. I haven't withdrawn from my account, so can't comment on whether a similar code is used
 
gipimann said:
There was 2FA on opening an account - a code was sent to my mobile. I haven't withdrawn from my account, so can't comment on whether a similar code is used
Click to expand...
A withdrawal can only be made to the Reference bank account and I think it requires a code sent to your phone.
 
To check in relation to this "double tax" situation;

We're obliged to pay DIRT in Ireland, but there's also "withholding tax" on certain accounts with Raisin.

To reduce the withholding tax, we submit a letter/certificate of tax residence.

This can be obtained off revenue.ie?

With Blu Or bank in Lithuania (credit rating A+), there's a 20% withholding tax, reduceable to 10% with the provision of tax residence cert, then pay 33% DIRT in Ireland.

So total 43% tax paid on interest?

Does that sound correct?
 
BrokeBroker said:
With Blu Or bank in Lithuania (credit rating A+),
Click to expand...
Just to clarify:
Your account is with BluOr in Latvia, not Lithuania. BluOr does not have an A+ credit rating, the country of Latvia does.
BluOr has 3% market share in Latvia, its twice the size of our largest credit union.

BrokeBroker said:
So total 43% tax paid on interest?

Does that sound correct?
Click to expand...
No. You get a credit for the withholding tax as there's a double tax agreement between Ireland and Latvia.
This thread discusses it:

Raisin Bank and withholding tax

Can someone please explain what effect withholding tax has on the interest I would receive from Raisin. e.g. A one year fixed term deposit via Raisin with BluOr Bank is has an interest rate of 3.21%. However there is a witholding tax for Latvia. Effective rate 3.21% AER Nominal rate 3.21%...
www.askaboutmoney.com
 
I replied to one of these threads on Raisin investments, making it sound simple to send their forms to Revenue.ie for completion then post back to Raisin. It's not simple.

I have two accounts with BluOr via Raisin and won't open any more.
Back in March I submitted the forms to Revenue for each account, then returned them to Raisin, taking copies for my records.
After weeks Raisin messaged me to say BluOr wouldn't accept the forms as they were photocopied, not original.
One of my accounts is very small, so I didn't bother trying again with that one, but did write again to Revenue with newly completed forms for the second account, just in case I had made an error.
Though I was almost sure that neither Revenue nor I had erred.

Today, in regards to the Definitely Correct forms I posted to Raisin on 7th July, I received the same message rejecting the form:

We are writing to you as we have received an update from the partner bank
regarding your tax documentation.

Unfortunately, BluOr Bank is unable to accept your tax documentation as the
documentation appears to be scanned. Please note that the partner bank
requires the documentation with the signatures in original ink. We apologise
for any inconvenience this may have caused.
 
In relation to withholding and subsequent Irish tax exemptions:

I'm sure this has been covered in other threads, but if someone could give me the short and sweet version?

BluOr in Lativa = all that submission of letter of residence, etc.
So you avail of the reduced 10% withholding tax.
And that can be deducted from the 33% Irish DIRT?

i.e. the withholding tax paid in Latvia, is deducted from the obligatory 33% DIRT payable in Ireland?

..........

The next best deal with Banca in Italy = no withholding tax, so we simply declare the interest and pay 33% DIRT in Ireland?

The second option seems easier?

I'm just trying to figure out if there's any interest compromise with the better option of BluOr - due to withholding tax?

Or we essentially pay the same level of tax, just with more paperwork in option A?
 
Its more effort to sent them the forms to exempt yourself I think.
May as well let them keep their % and pay the balance to Irish revenue
 
Yes.

I suppose there is a moral question.

Should Irish taxpayers want all the tax to go to the Irish government and make the effort to make that happen?

Or be happy that a % goes to an overseas government?
 
Thanks a lot for feedback, would appreciate an update. I can say from my own experience BFF was very easy to deal with in contrast.
 
Hi Gervan, I opened an account this week with Raisin and a deposit acount with BluOr and will send some funds next week. My understanding is that the only thing that needs to be done is request a Letter of Tax Residence from Revenue online (for Latvia purposes) and e-mail it to Raisin. They will forward it to BluOr for the 10% witholding tax. This is indicated here


Why did you have to post them ? I'm just trying to understand if I'm following the right process...

Thanks
Francois
 
Franc1,
that link is dated one month ago, so maybe the instructions have changed since I went through the rigmarole of having to post a form to Revenue, then post that back to Raisin. Who would then post it on to BluOr!
That link does say the form can be emailed!

I don't think I will try again, just to save 5% of 3%.
 
Thanks for the replies. I will see if this new process works and post an update in this thread in the next few weeks or so. I wonder though if the tax residency document relates to the year of when the account was opened or to the year when the interests are paid. So if I open and account in September 2023 for example, the interests aren't paid until September 2024, so I guess the relevant year for the tax residency document will be next year not this year.
 
If BluOr don't receive the letter of tax residency, does that mean the account holder pays their 20% withholding tax, PLUS the 33% DIRT in Ireland?
i.e. total 55% tax on interest.

With the double tax agreement, I assume the 10% reduced with holding tax is deducted from the 33% in Ireland.
i.e. just the expected 33% tax on interest.

So - it would definitely behoove account holders to ensure that tax certificate is submitted accordingly.
 
I applied for the letter of residence though revenue.ie

No acknowledgement of receipt etc.

I just sit and wait and hope it's being processed?

Are Irish revenue typically considered ineffeicient?

........

And it's for 2023.

If the account matures in 2024, does that mean another letter of residence for that year will be required?
 
Also, call me over cautious but, Latvia is right on Russia's firing line and with all that commotion around the Baltic states.........

I mean I know they have an A+ credit rating but......... I'm hardly the only one thinking that, am I??
 

To answer my own question:

In this case, the withholding tax is 10%, but it is fully deductible if it isnot refundable abroad
Click to expand...

As per:


"It is fully deductable" - that doesn't specify, from what?

From Irish DIRT?
 
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