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

I can say with reasonable certainty that's what the Form 11 does, I was messing around last night (on the single computer I can easily use for this- thanks to Revenue's login process)

There's 3 fields
a) Amount of EU 'Other' Interest
b) Savings Directive withholding tax credit
c) Foreign tax (other than (b) above)

If I filled in 20% of tax into b) or c) it then accepted it and would only ask for the difference.
Clearly you'll have to have some sort of statement from the bank which shows figures that match your information - if you're ever asked.

Will Revenue ever subsequently ask for more money, I don't know. They possibly don't know themselves. Details like this may sometimes only be discussed and decided in private meetings between Revenue and accountancy firms and take time to filter out to general tax paying public. While nothing has changed recently in the tax form - what's changed is significant numbers of taxpayers will be declaring non-Irish deposit tax.
 
Lodged money to Lightyear a few months ago, interest added to account on time every month. Had to withdraw it yesterday as it forms part of house deposit, arrived back into my bank account same day. No complaints from me, will use them again in future.
 
Francois wrote: 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


https://help.raisin.ie/hc/en-gb/articles/12590927473426-How-do-I-avoid-double-taxation-on-the-deposit-accounts-I-have-contracted-with-Raisin-

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

Now read on....

I did say I'd given up, but I'm easily led! It looked so simple, Francois.

I followed the steps in that Raisin link.
I got the letter of tax residence from Revenue.
I emailed it to Raisin as instructed, on 17/09.
On 26/09 Raisin replied to say the letter was received and they would forward it to BluOr.
Today Raisin replied as below:

Thank you for your email.

Thank you for sending us your certificate of tax residence as a scanned copy.
Unfortunately, the (Partner bank BluOr Bank needs the original document.

We kindly ask you to send the original document as soon as possible by post
to:

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

I am definitely giving up. Has anyone succeeded in having BluOr accept the emailed letter of tax residence?
 
Previously for an account with BluOr a form was required (available to download on Raisin). I think the form was from BluOr but it may have been from Latvian tax office. Anyway, the form was mostly pre-populated, I had to complete one section and then send to Revenue for them to complete and stamp another section. Took revenue about two weeks to return the form. They completed the wrong section. I gave up. I'm happy to let Latvia have the tax and pay the balance to Revenue.
J&T Banka accepted the auto generated certificate from ROS, while the French bank don't take any tax.
If it's too much hassle, I don't bother.
 
BrokeBroker said:
But are you certain that's how it works?

And that in actual fact you won't be paying 20% tax to Latvia and the full 33% to Irish revenue?
Click to expand...
If the double tax agreement between Ireland and Latvia provides for it you get a credit for the 20% deposit interest withheld in Latvia and you pay the balance of 13% to a Revenue having filed details of the deposit interest income via your tax return.
 
Sounds like pain in the ass
 
I don't think it's true, but can someone clarify please, and will Revenue bother? I think that the maximum amount that you can allow for is 10% hence you need the tax residency forms etc. If Latvia witholds 20% you cannot pay the balance of 13% to the Revenue, as the maximum allowable is 10% , at least this is how I read it. I think you still have to pay a balance of 23% . Read the Artilce 11 on page 13 https://www.revenue.ie/en/tax-professionals/documents/double-taxation-treaties/l/latvia.pdf , it says

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises andaccording to the laws of that State, but if the beneficial owner of the interest is a resident ofthe other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

The Contracting State is Latvia, the other Contracting State is Ireland.
 
For me. the amounts aren't really significant to worry about. If the amounts were bigger I might. I'm in the process of completing Form 11.
There is a section on Form 11 for EU Interest and the amount of tax paid. There is also a section for Double Taxation Relief. In the final calculation section the amount you enter for interest is used to calculate the DIRT (doesn't deduct the foreign tax). From Form 11 help section it looks like Revenue would prefer you claim it back from the foreign jurisdiction.
 
It varies by country. Completing the Latvian Tax form (they make it difficult, needs to be signed by Irish Revenue, posted to Berlin and then onto Latvia), the withheld tax is reduced to 10%. For the Czech Republic, they accept the auto generated PDF cert from ROS, tax is reduced to zero. The French banks take nothing.

I've only had one Latvian (BluOr) and one Spanish (BFF) that required the awkward tax forms, so I'll probably avoid these in future (unless the returns are going to be massive).

This is the template supplied by Raisin to accompany the completed Latvian Tax Form
 
So did anyone actually opt to go with a Raisin associated institution that doesn't implement withholding tax?

Even if their interest rates are lower?

The Italian and French offers don't have the withholding tax documentation.

BFF, Banca Private Leasing, YouNited?

Where BluOr have an international reputation, I'm unsure about these?
 
From what I understand, payment of withholding tax is mandatory on foreign investments, regardless of whether the Bank you invested with abroad impose the tax or not. One could end up paying the tax in both countries depending on the taxation agreements between the countries concerned.
 
Cooler_box said:
From what I understand, payment of withholding tax
Click to expand...
Do you mean tax on deposit interest?
Withholding tax is exactly that - tax that it withheld at source on certain returns (e.g. deposit interest, dividends etc.).
 
Was it ever clarified whether one is charged PRSI on deposit interest when filing Form 12?
 
Yes. I did just that. I went with
The Italian and French offers don't have the withholding tax
Click to expand...
 
ROS said:
Yes. I did just that. I went with
Click to expand...

Which, YouNited or...?

Their credit ratings aren't as good as BluOr, but apparently the DGS would have a depositor covered even in the case the institution defaults? (and YouNited is new and not a major bank, I believe?)
 
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