Dividend Withholding Tax

Rataan

I have an online share dealing account with Goodbody stockbrokers, and I earned approximately 150 euro last year in dividends from U.S., U.K. and German stocks in my portfolio. Can somebody please explain how I declare this to revenue (or is it even worth the bother for such a small amount?), as the information on their website is not very helpful.

I can see on my PAYE Anytime account that there are sections where I can enter gross incomes from U.K. and U.S. dividends, but nowhere do I see a section for German, or Other Foreign dividends.

I heard somewhere that intermediaries such as Goodbody's apply dividend withholding tax at source to their customers' dividends, but only at the lower tax band. It would then be up to the customer to pay tax on the balance, at the higher rate of tax, if applicable. Is this true, as I would want to avoid being double-taxed?

Prezatch

Form 12:

http://www.revenue.ie/forms/form12.pdf

ballyharpat

it really is not a big deal if you do not declare such a small amount, I believe, I used to get dividends from DPW and also Kerry group......Was never hassled to pay tax and I held them for 10 years.....

neris

ballyharpat wrote: »

it really is not a big deal if you do not declare such a small amount, I believe, I used to get dividends from DPW and also Kerry group......Was never hassled to pay tax and I held them for 10 years.....

but if revenue do ever find out they,ll want their money plus interest.

ballyharpat

I do believe that it is posted on the revenue.ie page, when you are filing yourself, that it states they do let minimum amounts slide, I clearly remember contacting them and being told that it was not a problem that the amount was so small and infrequent. BUt drop them a line and they will be back to you in no time, they are not after every nickel and dime, unlike what we hear in the populist lefty websites, they are after big money.

Rataan

Thanks JoeyD, that was exactly what I was looking for. From reading through Form 12 it appears that the information that I was looking for is on pages 7/8, and can also be submitted through PAYE Anytime.

I was still confused as to whether tax had already been applied to the dividends by Goodybody's before I had received them, so I called them up, and yes, tax is applied in the source country before the dividend is paid out. In order to complete my returns to Revenue, I would need to know how much tax has already been paid. Goodbody's also answered that question for me. They send out a Consolidated Tax Voucher every year, which lists the gross and net amount for each dividend that was paid out to me, and how much tax was deducted. Using this information I would now be able to complete the Form 12 that JoeyD has supplied the link to.

Rataan

ballyharpat wrote: »

I do believe that it is posted on the revenue.ie page, when you are filing yourself, that it states they do let minimum amounts slide, I clearly remember contacting them and being told that it was not a problem that the amount was so small and infrequent. BUt drop them a line and they will be back to you in no time, they are not after every nickel and dime, unlike what we hear in the populist lefty websites, they are after big money.

Thanks for the reply ballyharpat. I was thinking the same myself, that Revenue wouldn't ever be bothered to come after me for such a small amount. A friend of mine just so happens to be an auditor in Revenue, so I asked him. All he could say to me was that I "shouldn't worry" about Revenue ever coming after me for it, but if they ever did, a year or two down the line, then interest would be due.