Hi All,
Long time lurker - first time poster. Just want to say a big thanks to all at AAM for all the help over the last number of years with various issues.
I know this topic has been covered in some existing threads but I'm still confused so hope someone with first-hand experience can share their knowledge. I've had my head buried in the sand (about lots of financial issues
) but now finally facing up to the fact that I owe income tax on dividends from US shares going back 9 years.
I've registered my W8-Ben so US DWT at 15% and Irish Standard Rate tax have been deducted (by the Trustees/Brokers) as follows:
(Gross Dividend - US 15%DWT) * Irish Standard Tax Rate.
e.g. If Gross Dividend = €100 Then (€100 - €15) = €85 * 20% = €17 leaving Net Dividend of €68.
I'm in the higher tax bracket, so I was all set to pay the difference between standard and marginal for each year, e.g. €85 * 21% for the example above, until I came across the following link on the revenue.ie site:
[broken link removed]
and particularly the statement:
"It is the gross amount of the US dividend that is taxable".
Hence my confusion and the following questions.
1) Have the brokers calculated the standard rate tax incorrectly against the net dividend rather than the gross (which I doubt)? If not why does the revenue site say this?
2) I know other threads have mentioned a credit for US 15% DWT under the Double Taxation treaty but I can't find any reference to this on revenue.ie. Has anyone made a similar tax return (albeit on time) and received such a credit?
I've also factored in stat. interest and penalties (before anyone reminds me) but I want to try to get this right first time and put it to bed. I'll also try contacting revenue but as other posters have pointed out, the answer I get might depend on who answers the phone so I'd appreciate some fellow revenue customers' input.
Thanks in advance.
Long time lurker - first time poster. Just want to say a big thanks to all at AAM for all the help over the last number of years with various issues.
I know this topic has been covered in some existing threads but I'm still confused so hope someone with first-hand experience can share their knowledge. I've had my head buried in the sand (about lots of financial issues
) but now finally facing up to the fact that I owe income tax on dividends from US shares going back 9 years. I've registered my W8-Ben so US DWT at 15% and Irish Standard Rate tax have been deducted (by the Trustees/Brokers) as follows:
(Gross Dividend - US 15%DWT) * Irish Standard Tax Rate.
e.g. If Gross Dividend = €100 Then (€100 - €15) = €85 * 20% = €17 leaving Net Dividend of €68.
I'm in the higher tax bracket, so I was all set to pay the difference between standard and marginal for each year, e.g. €85 * 21% for the example above, until I came across the following link on the revenue.ie site:
[broken link removed]
and particularly the statement:
"It is the gross amount of the US dividend that is taxable".
Hence my confusion
and the following questions. 1) Have the brokers calculated the standard rate tax incorrectly against the net dividend rather than the gross (which I doubt)? If not why does the revenue site say this?
2) I know other threads have mentioned a credit for US 15% DWT under the Double Taxation treaty but I can't find any reference to this on revenue.ie. Has anyone made a similar tax return (albeit on time) and received such a credit?
I've also factored in stat. interest and penalties (before anyone reminds me) but I want to try to get this right first time and put it to bed. I'll also try contacting revenue but as other posters have pointed out, the answer I get might depend on who answers the phone so I'd appreciate some fellow revenue customers' input.
Thanks in advance.