Rules The tax is deducted by the bank or other deposit-taker before the interest is paid to you. If you request it, you are entitled to be given a statement of the amount of DIRT deducted from your interest. 300 your bank, building society, credit union or An Post must automatically report this to Revenue. DIRT is a final investments an introduction mayo pdf for income tax purposes.
This means that if you have paid DIRT you do not have to pay any further income tax or Universal Social Charge on the interest, but it is declared as income if you are making a tax return. However, in some circumstances, you may have to pay PRSI on deposit interest you have received. Exemptions and refunds Certain people may qualify for a refund of DIRT or may have their deposit interest paid without the deduction of DIRT. You must apply to have your deposit interest paid without the deduction of DIRT – see ‘Where to apply’ below.
If you bought or self-built a property between 14 October 2014 and 31 December 2017, you may be entitled to claim a refund of DIRT. You must have been a first-time buyer. This means that you had never, either individually or jointly with any other person, previously purchased or built a house or apartment. The property must have been purchased or built as your home. The relief does not include properties acquired for investment purposes. If you are a first-time buyer who either buys or self-builds a new residential property between 19 July 2016 and 31 December 2019, you may be entitled to claim a refund of income tax and DIRT paid over the previous 4 tax years.
You can read more in our document about the Help to Buy incentive. In general, joint accounts where one of the account holders is aged 65 or over will only qualify for the refund of DIRT if the other account holder is that person’s spouse or civil partner. However, if another person, such as your son or daughter, has the authority to operate your bank account on your behalf, and is named as an account holder for this purpose only, you will continue to qualify for the refund of DIRT provided you are the beneficial owner of the account. You can get more information on the DIRT exemption for permanently incapacitated individuals from Revenue.
Non-resident accounts If you are not resident in Ireland for tax, you may get a refund of any Deposit Interest Retention Tax deducted from your Irish deposit interest. To get a refund of DIRT, Ireland must have a double taxation agreement with the country you are resident in. DIRT will be refunded under the terms of that agreement. If you are not resident in Ireland, you may get your Irish deposit interest paid without the deduction of DIRT. A non-resident person does not have to be a resident of a country that has a double taxation agreement with Ireland to apply for a DIRT exemption. You should contact your financial institution to find out if you can be exempt from paying DIRT. Before 2014 certain types of credit union accounts were not subject to DIRT.