Exemptions from DIRT for very low earners?

Faith

If a person earns a very low amount per year (say, a student with a part-time job), and doesn't earn enough to pay income tax or even the USC, are they still liable for DIRT on savings in a deposit account? I'm confused about whether interest earned is considered income or not, or if there's a way around paying DIRT with such a low income.

srsly78

http://www.citizensinformation.ie/en/money_and_tax/tax/tax_on_savings_and_investments/deposit_interest_retention_tax.html

Only people over 65, or those with a disability can get exemption it seems.

KCTK

Faith wrote: »

If a person earns a very low amount per year (say, a student with a part-time job), and doesn't earn enough to pay income tax or even the USC, are they still liable for DIRT on savings in a deposit account? I'm confused about whether interest earned is considered income or not, or if there's a way around paying DIRT with such a low income.

Hi Faith, i'm afraid there is no way around paying DIRT if you are an Irish resident individual unless you are over 65 or permanently incapacitated. No relief for low paid Irish individuals if you do not fall into one of these categories.

http://www.revenue.ie/en/tax/dirt/index.html

Faith

Thanks for the replies. I see the Citizen's Information site says "People not resident for tax" may also qualify for exemption. I will be moving abroad in August, but since I don't currently pay tax, I don't know how to go about confirming that I'm not resident for tax? Do I have to change my address with the bank where my deposit is or something?

nompere

You will have to satisfy the bank that you are no longer resident here, because it is the bank who will be primarily responsible for penalties if they operate a dirt-free account for a person who is resident here.

It's not only over 65s who can get dirt-free accounts - companies, no matter how big, are entitled to them as well.

Shane732

To be non-resident you must be in the State for less than 183 days in any year or 280 over 2 years.

Are you talking about a lot of DIRT?

srsly78

If resident in another country, that other country would probably expect you to pay their own version of deposit tax.