US dividends on form 11 return

Hi all,

I know there have been some discussions on this but none have been specific about what is put on the form.

I have some small US dividends. A W8BEN form has been completed so the US broker deducts 15% withholding tax. My understanding is that I owe 27% more to bring the total tax to 42%. Ireland and the US have a double taxation agreement so this should be the case.

However on form 11 page 13 - section 406 I need to enter the gross amount of US dividends. Is this the amount before the 15% tax? or the amount I received?

Several of the other sections have a place for foreign tax deducted, so I would have expected 406 to have this but it doesn't. It does have a note saying to enter the "Irish" tax deducted at 414. Is the 15% withholding Irish tax? I didn't think so.

I'm assuming that if I enter the gross amount in 406, revenue will tax it at 42% meaning I will have paid 57% in total tax. Even if I put the net of 15% in and they tax that at 42%, I will have paid 49% tax in total.

Ix.

ixtlan said:

I have some small US dividends. A W8BEN form has been completed so the US broker deducts 15% withholding tax. My understanding is that I owe 27% more to bring the total tax to 42%.

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Income tax in 2007 is 41% and not 42% as it was last year in case you are not aware.

However on form 11 page 13 - section 406 I need to enter the gross amount of US dividends. Is this the amount before the 15% tax? or the amount I received?

Click to expand...

Sounds like it. I would enter the gross amount and note on the form that US witholding tax of 15% was deducted even if there is no specific box for this. Attach an explanatory letter if necessary.

Yes you should enter the gross amount, you will get a credit in your assessment for the U.S. witholding tax paid.