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

BrokeBroker said:
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??
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If Russia fires to Latvia, a NATO member well.......the BankOR account would probably be the least worrisome element in the overall equation.
 
Raisin also mentions that, upon opening an account, then forward all the necessary tax documentation.

I've opened an account, only not yet transferred the funds in.

When does the tax documentation arrive?

I was hoping to get all that squared away before taking the final step of committing the funds to a Raisin account?
 
BrokeBroker said:
I e-mailed Raisin last Thursday and still no reply.
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As soon as I deposited the cash (50k in BlueOR) I got this mail from Raisin. I requested the tax residence cert from Revenue on Line, so far all silent.

Bank: AS BlueOrange Bank
General information:
Latvia has a standard withholding tax of 20% on deposits, but due to the double taxation agreement between Austria and Ireland, customers are able to reduce this withholding tax to 10% by presenting the documentation indicated below.
Standard withholding tax:
20%
Reduced withholding tax:
10%
Term:
The form must arrive in Latvia between 1 year and, at most, up to 4 weeks before the maturity date. It is important to note that Revenue.ie can take up to 6 weeks to process the document so it is best to send your application to the Tax Authorities no later than 12 weeks before the due date. These documents are valid for 5 Years.
Required Documentation:
To reduce the withholding tax, you will have to provide a tax residence certificate (Letter of Residence) for Latvia issued by Irish Revenue. In addition to this we will provide you with an additional residence form prefilled with some of your data. This form will have to be signed, stamped by Irish Revenue and sent to Berlin. Further instructions on this process are made available to you following the opening of your deposit.
In case you have several deposits with the same partner bank:
If you have more than one term deposit with the same expiration year, you are only required to provide the documentation once.
If you have multiple open deposits with different expiration years, you must send the relevant documentation each year.

Certificate of tax residence​

Introduction​

In order to avoid partner banks applying a withholding tax to the interests generated by their deposits, the clients will have to present a Certificate of Tax Residence issued by the Irish Revenue. In this way, clients can justify that they are tax residents in Ireland and the partner bank may apply reduced withholding tax on the interest earned by the contracted deposits.

Validity​

Unless the specific regulations of the tax certificate establish otherwise, the tax certificates will be valid for the year of issue as long as there are no changes in the circumstances determining their content.

Request​

Customers with tax residence in Ireland proceed as follows:
In order to obtain the Tax Residence Certificate, the client must submit a Letters of Residence request via ROS or myAccount on Revenue’s online service: https://www.revenue.ie/
Additional details regarding the myAccount service, including how to register can be found here.
Once logged in to myAccount, the Letter of Residence link can be found in the “Manage My Record” section. Complete the short application form including e-mail address and the relevant tax year. Clients should make sure to select the relevant country from the “Jurisdiction” drop down.
Letter of residence requests should be processed by the Revenue authority within a few days and the Letter of Tax Residence will be sent to the e-mail address provided during the request process.
 
Seems a pain,I wonder how reasonable all these steps are. The 1 year term at 3.9% from that Italian bank looks increasingly attractive.
 
irishfinanceguy said:
Seems a pain,I wonder how reasonable all these steps are. The 1 year term at 3.9% from that Italian bank looks increasingly attractive.
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Why does withholding tax matter?

On the Form 11 (and I hope the Form 12) you put in deposit interest received, tax withheld and the form calculates the remaining tax you need to pay.

So if BlueOr charge 0%, 10% 20% or even 33% it makes no difference to Irish depositors. Our DIRT is higher than any withholding tax I'm aware of.

There seems to be no carrot or stick to the Irish depositor to make an effort to pay the least possible withholding tax.
 
ashambles said:
There seems to be no carrot or stick to the Irish depositor to make an effort to pay the least possible withholding tax.
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Agreed, unless a depositor is DIRT exempt, or in a situation where they can reclaim Irish DIRT in future (1st time house buyers).
 
 
Max is 15% so if in theory BluOR withheld 30% you can only claim 15% not the full 30%
 
Franc1 said:
Max is 15% so if in theory BluOR withheld 30% you can only claim 15% not the full 30%
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Can you quote the legislation or Revenue guidance behind this statement?
Are you confusing dividend withholding taxes with interest?

10% is the max withholding tax on interest in the DTA between Latvia & Ireland.
 
RedOnion said:
Can you quote the legislation or Revenue guidance behind this statement?
Are you confusing dividend withholding taxes with interest?

10% is the max withholding tax on interest in the DTA between Latvia & Ireland.
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There was a recent link to an article on the revenue site highlighting this. I think it was about 2 weeks ago or so. I would need to dig it out
 
RedOnion said:
Can you quote the legislation or Revenue guidance behind this statement?
Are you confusing dividend withholding taxes with interest?

10% is the max withholding tax on interest in the DTA between Latvia & Ireland.
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And are we absolutely certain that is the case, and won't subject to double tax (i.e. 20% there and 33% here, totalling 53%) if the required documentation is not submitted?
 
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