DIRT tax

endofrainbow

I have a 1 year fixed account with my bank due for maturity in January. I received a letter this morning outlining the details, but noticed that DIRT will be charged at 41%.

I thought the DIRT tax had been reduced by 2% in the last budget and will continue to be reduced by 2% until it reached 33%.

Should my tax liability not be 39% instead of 41% ?

endofrainbow

how is that relevant ?

TiGeR KiNgS

Is PRSI @4% also due ?

http://www.welfare.ie/en/Pages/Frequently-Asked-Questions-on-the-Broadening-of-the-Income-Base-for-PRSI-.aspx

endofrainbow

no but my question relates to the 41% dirt tax

TiGeR KiNgS

endofrainbow wrote: »

no but my question relates to the 41% dirt tax

then it peanuts.

Stheno

Budget 2016 changes only come into effect from 2017 so for 2016 its still the higher rate

StGriffen

TiGeR KiNgS wrote: »

Is PRSI @4% also due ?l

If you are a chargeable person then yes:

Q. I am paying DIRT on my savings. Do I also have to pay the new PRSI charge?

Yes provided that you are over 16 and under pensionable age and that you are a chargeable person in accordance with the Revenue definition of a chargeable person (detailed below).

Q. What is a chargeable person?

A chargeable person does not include a PAYE taxpayer (i) who does not have other income or (ii) who has an element of other insignificant income that is fully taxed through the Revenue Commissioners PAYE system (Revenue regard amounts not exceeding €3,174 as insignificant. Individuals

myshirt

endofrainbow wrote: »

how is that relevant ?

Deleted their post, but exactly, what relevance has the balance at all.

Op, think in terms of the rate in force when the interest was earned.