Withholding Tax, Blu Or & Maths Help please. (If you have not started the Tax paperwork - Start early)!

[ACER10]

Hoping I can ask the AAM group brain for Maths help.
I get by with a calculator or excel but it is all still a complete guessing game.

BlurOr Bank (Raisin) (4.0%)

6 month term - Start date 17/01/2024 - Maturity date 17/07/24

Deposit €50,000.00

Expected Interest (Is this correct?) =SUM(E94/100*4/2) €1000

I need to decide by July 10th, if I want to roll over into another 6 month term at a rate of 2.7%.
I have posted away the documents to Revenue, however no sign of getting them back
They need to be printed, signed in ink and posted off and so I will have to pay "a withholding tax of 20%" "withheld on interest income".

1. Is that €200 (20%) tax on €50,000 deposit for 6 month term at 4%? (I love that this is a no shame space for asking questions).
2. When added up Interest at the end of the year for Revenue
3. - do I declare €1000, and reclaim €200 already paid to Latvia (?)
4. - do I declare €800 and pay Irish DIRT (which presently revenue are adding on as Income and taxing Higher Rate Tax and also USC).
5. Could someone do an equation for me to show what I expect after withholding tax and Irish Dirt?

 

[klaus-v]

My experience: Opened the account last year at the end of August and put 50k with BlueOr. I posted the withholding tax documents to Revenue around the end of September. I got them back after 2 weeks. I signed them with ink and sent them to Raisin in early October. After almost two months (it was the 24th December) I got a mail from Raisin telling me that they were forwarding the signed documents to BlueOr. Since then I have heard nothing back, so I suppose my documents are all ok and the withholding tax will be reduced. Some people had the documents returned by BluOr due to some issues with the signature not being in printed ink, or something like that.

 

[ACER10]

My experience: Opened the account last year at the end of August and put 50k with BlueOr. I posted the withholding tax documents to Revenue around the end of September. I got them back after 2 weeks. I signed them with ink and sent them to Raisin in early October. After almost two months (it was the 24th December) I got a mail from Raisin telling me that they were forwarding the signed documents to BlueOr. Since then I have heard nothing back, so I suppose my documents are all ok and the withholding tax will be reduced. Some people had the documents returned by BluOr due to some issues with the signature not being in printed ink, or something like that.

Thank you @klaus-v
... At least I know now that Raisin can take 2 months to even respond. Since I posted question, Revenue have responded to me 7 months later stating that they will change last year (2023) statement of liability from charging full higher rate tax and USC to normal DIRT rate, so at least that is something. (Although, the statement of liability has not been changed yet).

Also, I have read somewhere that even if charged 20% withholding tax, that I can get a tax credit applied.

So I think my worst case maths scenario is not going to happen: (€1000 interest less €200 to Latvia and then of the €800 remaining, revenue would slice off higher rate of tax and USC...). Instead, it will be normal DIRT just a more roundabout approach.

 

[klaus-v]

You can get max credit of 10% see document here under deposit interests
https://www.revenue.ie/en/tax-professionals/documents/double-taxation-treaties/l/latvia.pdf
So the tax of interests from EU bank deposits needs to follow the same exact tax rules as the tax on deposits in Irish banks otherwise I think Revenue will be in breach of the EU regulations. In my case since my interests will mature at the end of August I have a bit more time and hope that all these problems will be fixed by the time I have to pay and file

 

[ACER10]

You can get max credit of 10% see document here under deposit interests
https://www.revenue.ie/en/tax-professionals/documents/double-taxation-treaties/l/latvia.pdf
So the tax of interests from EU bank deposits needs to follow the same exact tax rules as the tax on deposits in Irish banks otherwise I think Revenue will be in breach of the EU regulations. In my case since my interests will mature at the end of August I have a bit more time and hope that all these problems will be fixed by the time I have to pay and file

Thank you.. I attempted to scroll through document. It may be useful later to send back to revenue when trying to claim credit on the tax. Ok so pay 20% withholding tax... So €200 on €1000 interest. Then can claim 10% back, so €100.
So up €900, and then hopefully Revenue take 33% DIRT from tha figure. Thank you.