Do I have to pay DIRT?
Deposit Interest Retention Tax (D.I.R.T.), at the rate of 37% (from the 1st January 2018) is deducted at source by deposit takers (e.g. banks, building societies, Credit Unions, Post Office Savings Bank, etc.) from interest paid or credited on deposits of Irish residents.
From this year on Credit Unions must deduct DIRT from dividend paid to all members, unless the member is exempt from DIRT. Please note that the only members who can be exempt are those aged over 65 who meet the criteria laid down by revenue or those who are permanently incapacitated and meet the criteria laid down by revenue (click on link for criteria http://www.revenue.ie/en/tax/dirt/leaflets/de1.html or www.revenue.ie/en/tax/dirt/leaflets/de1.html). Children are not exempt.
Reporting to Revenue
Following the introduction of the Return of Payments Regulations 2008, all financial institutions (including credit unions) are obliged to report details in respect of dividend and interest to the Revenue Commissioners. In summary, credit unions must report annually certain details in respect of dividend or interest payments to members in excess of €300; they must also report the first relevant dividend or interest payment on new accounts, irrespective of the size of the payment.
Financial Institutions including credit unions must make reasonable efforts to seek Tax Reference numbers (PPS Numbers) from members.
Some Important Points to Note:
- The Regulations do not apply to Loan Interest Rebates
- The Regulations do apply to all Share and Deposit Accounts
- The amounts to be reported are the gross divided or interest i.e. before any deductions including DIRT