I received a massive €11 in dividends this year. Do I have to report this to Revenu?

JackieChang · 14-12-2020 9:22pm #1

Title.

I only started investing at the start of the year. I have received a total of €11 in dividends this year. Apparently I need to report even 1 cent of a dividend.

Really not worth the hassle though. Would you report €11?

If I don't report it, will it come back to bite me in the arse in 20 years?

Timmaay · 14-12-2020 10:33pm

No.

Diarmuid · 15-12-2020 10:59am

It takes 5 minutes on ros.ie to report that €11. If you are concerned enough to ask the question, then I would just do that.

JackieChang · 15-12-2020 11:12am

Diarmuid wrote: »

It takes 5 minutes on ros.ie to report that €11. If you are concerned enough to ask the question, then I would just do that.

Are there any "newbie" guides out there on how to do it? It's already taken me more than 5 minutes to read the official guide and I'm even more confused now.

Do I need to register for some sort of tax number?

antfin · 15-12-2020 11:14am

JackieChang wrote: »

Are there any "newbie" guides out there on how to do it? It's already taken me more than 5 minutes to read the official guide and I'm even more confused now.

Do I need to register for some sort of tax number?

If you're PAYE it should be included on your annual tax return under "Other Income".

howiya · 15-12-2020 11:15am

If the taxable part of the €11 is the only tax you owe revenue they will probably just keep a note of it and reduce any future refunds you may be owed by it.

I reported a bigger dividend figure for 2019 recently and was told it wouldn't be collected at this time

Mickey_James · 15-12-2020 11:17am

No. Revenue don't go after small fish.

I've been getting cash into my account for a decade for rent (subletting) and I never got anything. For all anyone knows I am getting paid cash from another job which I'm not obviously.

No one's gonna come after you for 11 euro.

I've also been moving thousands in and out of degiro (often not buying stocks, just leaving it there and moving it out) and nothing said.

JackieChang · 15-12-2020 11:21am

Ok. I won't stress myself trying to report the €11.

Now, what about trading losses? I've lost about €1k over the last year. I should definitely report this one right? The loss has been realized.

Saudades · 15-12-2020 11:44am

Even only €11 if you report and pay it at least it will be good practice to get familiar with ROS. This time next year you may have a three or four figure dividend or CGT to report.

Saudades · 15-12-2020 11:45am

howiya wrote: »

I reported a bigger dividend figure for 2019 recently and was told it wouldn't be collected at this time

What happened there exactly? I thought 'Pay and File' was usually done at the same time, so did Revenue just reject your payment?

Supercell · 15-12-2020 11:47am

It takes seconds to do in the MyAccount section (if you are PAYE, under income section), no form filling just a couple of dropdowns and done, I would for peace of mind.

howiya · 15-12-2020 11:48am

Saudades wrote: »

What happened there exactly? I thought 'Pay and File' was usually done at the same time, so did Revenue just reject your payment?

No they issued an amended balancing statement which said I had underpaid tax by x amount and this underpayment would not be looked for at this time.

When I put in bits and pieces for 2020 (medical, work at home tax credit etc) the underpayment will be recovered from any refund I am due.

Supercell · 15-12-2020 11:51am

JackieChang wrote: »

Ok. I won't stress myself trying to report the €11.

Now, what about trading losses? I've lost about €1k over the last year. I should definitely report this one right? The loss has been realized.

Yep definitely, that goes on the CG1 form (https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/formcg1.pdf) and needs to be filed by the end of October next year.

JackieChang · 15-12-2020 1:15pm

Supercell wrote: »

Yep definitely, that goes on the CG1 form (https://www.revenue.ie/en/gains-gifts-and-inheritance/documents/formcg1.pdf) and needs to be filed by the end of October next year.

Can I not do this online? Also that link doesn't work for me.

ganmo · 15-12-2020 1:17pm

What costs can be used to off set dividend income?

Supercell · 15-12-2020 1:38pm

JackieChang wrote: »

Can I not do this online? Also that link doesn't work for me.

You can, upload a scan of it to My Enquiries in MyAccount, there is a drop down in there for CGT returns.
The link is at the bottom of https://www.revenue.ie/en/self-assessment-and-self-employment/guide-to-self-assessment/what-forms-do-you-need-to-complete.aspx , it's still dated for 2019 as we are not at the end of 2020 yet and it doesn't need to filed until Oct 2021, I'd imagine the file will update some time in the new year.

Supercell · 15-12-2020 1:39pm

ganmo wrote: »

What costs can be used to off set dividend income?

None, to my knowledge, bar your normal income allowances. What costs can there be for holding a share at dividend time?

loyatemu · 15-12-2020 1:45pm

JackieChang wrote: »

If I don't report it, will it come back to bite me in the arse in 20 years?

what's likely to happen in 20 years? "you failed to pay €4 in tax in 2020, now you owe us €8!"

JackieChang · 15-12-2020 3:15pm

loyatemu wrote: »

what's likely to happen in 20 years? "you failed to pay €4 in tax in 2020, now you owe us €8!"

My thoughts exactly.

The dividend payout is very low. 1.5 British pence per share. At what point should I start reporting it? When I'm getting €100 a year? €500 a year?

JackieChang · 15-12-2020 3:16pm

Supercell wrote: »

You can, upload a scan of it to My Enquiries in MyAccount, there is a drop down in there for CGT returns.
The link is at the bottom of https://www.revenue.ie/en/self-assessment-and-self-employment/guide-to-self-assessment/what-forms-do-you-need-to-complete.aspx , it's still dated for 2019 as we are not at the end of 2020 yet and it doesn't need to filed until Oct 2021, I'd imagine the file will update some time in the new year.

Thanks. I think I need a degree in accountancy to understand that form. Do you fill it out yourself or do you hire somebody to do it?

Supercell · 15-12-2020 3:34pm

JackieChang wrote: »

Thanks. I think I need a degree in accountancy to understand that form. Do you fill it out yourself or do you hire somebody to do it?

Lol, up to you

, I did a bit of googling the first time and do it myself. Revenue seem happy enough with my submissions so far.
I'll save you googling on this one - "aggregate consideration" - total value of sales in the period.
I do it as accurately as I possibly can, I figure out if i ever get audited I can honestly show exactly where i got my numbers from and reasonably show that i have tried my best to do it correctly. My returns are not millionaire numbers, even if done incorrectly they are likely not getting much extra anyhow!

ganmo · 15-12-2020 5:45pm

Supercell wrote: »

None, to my knowledge, bar your normal income allowances. What costs can there be for holding a share at dividend time?

Brokers charge a fee for processing dividends, normally a fee plus %

daheff · 15-12-2020 7:44pm

JackieChang wrote: »

My thoughts exactly.

The dividend payout is very low. 1.5 British pence per share. At what point should I start reporting it? When I'm getting €100 a year? €500 a year?

And you could end up on a tax defaulter list which could have more implications.

Report it when you start receiving dividends.

Bill Ponderosa · 15-12-2020 8:37pm

JackieChang wrote: »

My thoughts exactly.

The dividend payout is very low. 1.5 British pence per share. At what point should I start reporting it? When I'm getting €100 a year? €500 a year?

I've been getting dividends for years and never paid a penny apart from withholding tax. They won't come near you.

Munsterlad102 · 15-12-2020 8:38pm

Pardon my ignorance, but I'm very new to investing, are dividends taxed at 33% under capital gains tax? Also, is there any tax if I were to reinvest my dividends, or could I offset any dividends against my stocks losing value?

Saudades · 15-12-2020 9:23pm

Munsterlad102 wrote: »

Pardon my ignorance, but I'm very new to investing, are dividends taxed at 33% under capital gains tax? Also, is there any tax if I were to reinvest my dividends, or could I offset any dividends against my stocks losing value?

No, dividends are taxed at your income tax rate.
Not sure about the second question.

Mickey_James · 15-12-2020 9:27pm

Munsterlad102 wrote: »

Pardon my ignorance, but I'm very new to investing, are dividends taxed at 33% under capital gains tax? Also, is there any tax if I were to reinvest my dividends, or could I offset any dividends against my stocks losing value?

No, I believe once you receive the dividends in your brokerage account you need to declare it.

Supercell · 15-12-2020 9:30pm

Dividends are income, gains and losses on share sales are treated under CGT rules, so one has no bearing on the other.

beachhead · 15-12-2020 9:53pm

Supercell wrote: »

None, to my knowledge, bar your normal income allowances. What costs can there be for holding a share at dividend time?

The cost of buying/selling the original shares-one off allowance as far as I am aware

JeffKenna · 16-12-2020 12:03am

JackieChang wrote: »

Thanks. I think I need a degree in accountancy to understand that form. Do you fill it out yourself or do you hire somebody to do it?

I have a degree in accounting and my advise is to hire a good accountant to fill the form out. Can't be too careful now a days. The €4 euro might seem small now but worth doing it right for ease of mind.

Geuze · 16-12-2020 12:22am

Munsterlad102 wrote: »

Pardon my ignorance, but I'm very new to investing, are dividends taxed at 33% under capital gains tax? Also, is there any tax if I were to reinvest my dividends, or could I offset any dividends against my stocks losing value?

Dividends are taxed at your income tax rate: either 0%, 20%, or 40%

The DWT is 20%, although is this meant to rise?

What you do with your dividends is not relevant.

No, dividends can not be offset against capital losses.

CGT and IT are separate.

Saudades · 16-12-2020 1:23am

Just to add, Euro domiciled ETF dividends are taxed at 41% regardless of your income tax rate.

namloc1980 · 16-12-2020 10:37am

Timmaay wrote: »

No.

There is no materiality threshold that says you don't have to report dividends below a certain amount. Of course the Revenue aren't going to chase you for €11 but there is an obligation to report them none the less.

db · 16-12-2020 10:48am

revenue.ie is an excellent website and I find that they do everything they can to help you enter all your allowances and claim as much tax relief as you can. I don't understand why you won't report your dividends but when it comes to trading losses you want to make sure they are reported. If you are investing in shares you need to understand all aspects of it and that includes taxation.

honeybadger00 · 21-12-2020 5:45pm

Hi. I own some US stocks and I have received a dividend of EUR 3.34 this year. Degiro automatically deducted EUR 1.01 of it, which amounts to 30 % (with-holding tax).

I want to have peace of mind and declare it in PAYE.

(1) Do you declare it as "Other Income" --> "US Dividends"?

When I enter it there, the tax credits are reduced by EUR 0.17 but I would expect them to be reduced by EUR 1.33, which is 40 % - the rate at which I am charged.

(2) Am I missing something or is the tax credit reduction above correct?

Thanks in advance.

homewardbound11 · 29-12-2020 1:54pm

honeybadger00 wrote: »

Hi. I own some US stocks and I have received a dividend of EUR 3.34 this year. Degiro automatically deducted EUR 1.01 of it, which amounts to 30 % (with-holding tax).

I want to have peace of mind and declare it in PAYE.

(1) Do you declare it as "Other Income" --> "US Dividends"?

When I enter it there, the tax credits are reduced by EUR 0.17 but I would expect them to be reduced by EUR 1.33, which is 40 % - the rate at which I am charged.

(2) Am I missing something or is the tax credit reduction above correct?

Thanks in advance.

We put in any US shares dividends as [other] US dividends . Would be interested to know also .

cronos · 30-12-2020 4:56am

But this years don't need to be done until November of the following year right?

Munsterlad102 · 02-01-2021 3:56pm

Do you have to pay taxon any dividends you reinvest even if the cash never comes into your account? Like if you get stock instead of dividends rather than getting the dividends and buying back into the company.

Irish_rat · 02-01-2021 7:58pm

Dividends is easy enough to fill in, just add it to the PAYE MyAccount tax for the year.

Revenue really have to allow folk to file CGT returns online, still dinosaurs in that regard

Irish_rat · 02-01-2021 10:00pm

I thought US dividends was at nominal rate, ie 50% at higher rate?

Mine is only taxed at 20%

honeybadger00 · 02-01-2021 11:22pm

Irish_rat wrote: »

Dividends is easy enough to fill in, just add it to the PAYE MyAccount tax for the year.

Do you add it to PAYE as "Other Income" --> "US Dividends" as I would have thought and homewardbound11 does?

Many thanks..

Irish_rat · 02-01-2021 11:54pm

honeybadger00 wrote: »

Do you add it to PAYE as "Other Income" --> "US Dividends" as I would have thought and homewardbound11 does?

Many thanks..

Yep what I did

Tr_18 · 04-01-2021 5:02pm

I'm in a very similar position to OP. I started investing a small amount this year and have coincidentally made a massive profit of €11.30.
Should I sell these stocks on trading 212, declare to revenue and repurchase?

Chiarrai92 · 07-01-2021 12:18pm

Hello I'm currently filling up a tax return. But under dividend there's no option for EU dividend, only Irish, UK, US and Canadian dividend.

Would I just put it all into Irish dividend?

I received a massive €11 in dividends this year. Do I have to report this to Revenu?

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