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US Dividends

  • 25-02-2016 4:20pm
    #1
    valoren
    Registered Users, Registered Users 2 Posts: 5,554 ✭✭✭


    Hi,
    Just a question on declaring US dividends.
    I signed a W8-BEN form to reduce the dividend withholding tax from 30% to 15%

    So for the year 2016, if I were to receive a dividend of $100 from say Coca Cola, then I receive the $85 after the withholding tax into my account.

    Do I declare the gross $100 or the $85 as the $15 is already taxed?

    What would be the net payment out in this scenario?


Comments

  • #2
    Punkyblip
    Registered Users, Registered Users 2 Posts: 114 ✭✭Punkyblip


    If you are in receipt of US dividends the US company should deduct 15% DWT. You declare the gross dividend on your Irish tax return and claim a credit for the US tax paid. Note the you cannot claim a credit for more than the Irish tax liability on the US dividend so this should never result in a refund situation. If you have not completed a non resident from W-8BEN the US company may deduct 30% DWT. In this case you still can only claim a credit for 15% so it is important to complete this W-8BEN form before you receive the US dividend.


  • #3
    valoren
    Registered Users, Registered Users 2 Posts: 5,554 ✭✭✭valoren


    So in this situation, I have filled out the W-8Ben form;

    I receive a total of $100 in US Dividends for 2015.
    I received $85 (gross minus the 15%).
    I declare $100 received to the revenue on the Form 12?

    I get a tax credit?
    What would the net figure received actually be?


  • #4
    Triman111
    Registered Users, Registered Users 2 Posts: 59 ✭✭Triman111


    hi I have a similar question: Say I get 100 euro equivalent in US dividend, I pay both DWT (15) and encashment tax (15) on this, leaving me with 70 euro net. What figure do I put on the Form 12 to be sent to Revenue as the gross amount??


  • #5
    Triman111
    Registered Users, Registered Users 2 Posts: 59 ✭✭Triman111


    hi I have a similar question: Say I get 100 euro equivalent in US dividend, I pay both DWT (15) and encashment tax (15) on this, leaving me with 70 euro net. What figure do I put on the Form 12 to be sent to Revenue as the gross amount??


  • #6
    El Grifo
    Closed Accounts Posts: 43 ✭El Grifo


    Triman111 wrote: »
    hi I have a similar question: Say I get 100 euro equivalent in US dividend, I pay both DWT (15) and encashment tax (15) on this, leaving me with 70 euro net. What figure do I put on the Form 12 to be sent to Revenue as the gross amount??

    If you are completing paper form 12 for 2017 on page 10 item 28 you enter gross us div (in €uro). And on the line below the amount of us tax paid. Then in item 31 you enter the Irish tax paid on encashment.


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  • #7
    Triman111
    Registered Users, Registered Users 2 Posts: 59 ✭✭Triman111


    hi - I am submitting the electronic form. It just asks for one entry? do you know what I should enter?


  • #8
    El Grifo
    Closed Accounts Posts: 43 ✭El Grifo


    Triman111 wrote: »
    hi - I am submitting the electronic form. It just asks for one entry? do you know what I should enter?

    The eForm12 doesn't seem to have ( not that I've been able to find anyway) a field to input the Irish tax deducted. So you enter the gross as normal, it allows for 15% US tax but then the balancing statement issues with no credit for the Irish tax. I've then had to message them to include the Irish tax and they amend the balancing statement.

    The eForm 11 has a separate field for the Irish tax further down the page from the dividend entry and you must put that in manually so as to get the credit.


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