TAX on Dividends / Shares

AvonEnniskerry

Ok this is probably a stupid question and I need you to be blunt and spell it out for me because I do NOT understand taxes.

If you have bought shares in a company and as a result you receive out dividends every year or so. Now these dividends come out to you already taxed a fifth of the original payment e.g 25,000 is the payment. 5,000 is taxed and I receive the 20,000 left over. Is this further taxable???

Thank you

nompere

The company sends you a cheque for €20,000 and a certificate saying that they have paid €5,000 to Revenue. That's the €25,000.

You have to pay tax on that €25,000 at (say) 41% and USC of (say) 6%. 47% of €25,000 is €10,350. You get a credit for the €5,000 paid by the company, leaving you owing €5,350.

The actual figures depend on all your other income.

AvonEnniskerry

so if i'm to get credited the 5000 then all I owe out of my own pocket is the remainder 350?? But I am to pay the 5350 before I receive the credited amount back.. ie 5000. I did not know I was credited anything back...

Actual figures arn't applicable here. I'm just trying to make sense of all of this in my own head. Thank you


Oh no Sorry i've just read your response again. I owe 10350 and they credit the 5000 meaning from an origianl 25000 payment due to tax I am to receive only 14650, that's lousy. It goes in the same bracket as taxing inheritence. That money has already been taxed so why tax it again just because it's been handed on to someone else...? and why is it so complicated when it is so important that it's done correctly.