Deposit Interest Retention Tax (DIRT)

If you are an Irish resident and currently have a deposit account, then DIRT applies to you.

Deposit accounts held with financial institutions pay an annual rate of interest in return for saving with them. The interest you receive it subject to tax, called Deposit Interest Retention Tax (DIRT).

Rates

For 2020, the current DIRT rate is 33%, falling from 41% since 2016. If interest is received from an account in another EU member state, this is also subject to 33% and must be included in your annual tax return.

How is DIRT Deducted?

DIRT is deducted by the relevant financial institution in advance of interest being paid, once included in your annual tax return, no further tax or USC is due.

Exemptions

The following can receive interest DIRT-free or apply for a DIRT refund;

• Individuals over 65 years of age and annual income (including the interest) is below threshold below;

• Individuals where their tax liability due is less than their tax credits (including spouse) for that year
• Individuals permanently incapacitated and your tax credits (including spouse) exceed the tax chargeable on your income for that year.
• Companies liable to Corporation Tax
• Non-Residents
• Revenue approved pension schemes
• Charities
• First Time Buyers
  • If you bought or built a property between 14^th October 2014 – 31^st December 2017
  • The house must be your main residence
  • A refund can be claimed of any DIRT deducted on savings used to purchase the property up to 48 months before.

Contact us today to begin preparing your 2019 return 01 539 7999 or info@itasaccounting.ie