Tax on share dividends

gambler12

I have a few shares which I got through a scheme with my employer. I have recently received a small dividend on these shares which only amount to about 50 quid. The shares are based in Germany, and some tax was subtracted on these shares in Germany. Do I have to pay tax on this dividend in Ireland? I think I have to claim back the tax that was paid in Germany, and then pay the tax in Ireland?? Is it really necessary to do this on such a small divident amount??

dharn

Somewhat related question, if shares are allocated in lieu of dividend payment , in this case crh, im not an employee, how is capital gains calculated in the future if all the shares are sold

mozattack

dharn wrote: »

Somewhat related question, if shares are allocated in lieu of dividend payment , in this case crh, im not an employee, how is capital gains calculated in the future if all the shares are sold

Everytime the new shares are added they are a new holding so say you own 1,000 shares and that kicks out a gross dividend of €100 and you take 5 shares in lieu of dividend, I think the following applies:

Base cost for CGT increased by €100 (new share holding)

Assessed on €100 for income tax

dharn

Thanks for reply, but does any tax liability occur in the year the shares are added in lieu of dividends

Legend100

yes, income tax just like if you had received the dividend as cash.

You will be liable to income tax on an amount equal to the cash value of the distribution you received under Schedule F

dharn

Ok thanks for that

GSBellew

Foreign investment income is taxable under Schedule D Case III
Rather than schedule F for Irish resident companies.

The income which is taxable is the income actually received, the foreign tax credit is irrelevant for the purpose of calculating the tax liability.

Legend100

GSBellew wrote: »

Foreign investment income is taxable under Schedule D Case III
Rather than schedule F for Irish resident companies.

The income which is taxable is the income actually received, the foreign tax credit is irrelevant for the purpose of calculating the tax liability.

not relevant for the person asking about the CRH shares but relevant to the OP if they got shares in lieu of divs

Marcusm

GSBellew wrote: »

Foreign investment income is taxable under Schedule D Case III
Rather than schedule F for Irish resident companies.

The income which is taxable is the income actually received, the foreign tax credit is irrelevant for the purpose of calculating the tax liability.

Why would you not seek a credit under Sch 24; Ireland and Germany have a double taxation agreement and up to 15% IIRC is available as a credit. Anything in excess of 15% withheld in German should be available for refund (possibly not cost effective). In future, the OP should note that only 15% should be withheld. At that level of withholding, I would expect a credit rather than a deduction to give a better result.