SSIA - Tax on interest

Trotter

Im just curious about the tax on the interest for the SSIA when it matures.

Has the tax on interest been taken at source or will I have to pay the revenue a chunk of my SSIA?

TheDriver

You must pay DIRT on interest from the bank but not the 1 in 4 interest. It will look a few hundred but its over the 5 years, think its 23%

mel123

i just got my SSIA today....i didnt even know u were meant to pay tax!! So will i be stung for this at a later date or has it already been taken out of my final payment??

demac

It should already be deducted by the bank.

Call them if you need to confirm this.

Sangre

It would already be deducted.

Sony

Just to let you know-there is DIRT on the interest for the deposit based SSIA's as said before but also for anyone that has invested their SSIA in equities for the past 5 years there is a different tax applied--EXIT tax

The tax itself is 23% but it is ONLY applied to the GAINS on which the investment makes ie. You will NOT be taxed on what you paid in, you will NOT be taxed on what the government has contributed. However you WILL be taxed 23% on whatever the profit you make on investing these sums of money.

Luckily this should not be a cause for concern as the equity based SSIAs have by far outperformed the deposit based ones:)