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Help on reporting tax on dividends

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  • 18-01-2021 2:29pm
    #1
    timetogo1
    Registered Users Posts: 847 ✭✭✭


    I know that I have to report to Revenue my income received on dividends. I just wanted to make sure I'm doing it all right.

    On my Dividend overview in the 2020 Degiro report for my US shares I have

    €1139.21 Gross
    €162.33 Withholding tax
    €976.88 Net

    When I log onto Revenue and go to Payments it has a simple form for reporting US dividends.

    It asks for Gross. I presume that's the €1139.21 number. Is that correct? They'll account for the €162 already taken off?

    When I enter the €1139.21 it automatically populates the next field.
    Tax Credits Reduced by: €56.96

    Where is that number coming from? Its way to small. Am I doing something wrong or am I missing something?

    I haven't submitted the form yet so maybe it makes bigger changes that I'm not aware of.

    So just wanted to check here to see if anybody knows what the story is.

    I'm on the higher tax bracket.


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    #2
    irishlad.
    Registered Users Posts: 213 ✭✭irishlad.


    Revenue know you've already paid 15%.

    So the €56.96 is the other 5% to make up 20% tax.


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    #3
    B.A._Baracus
    Registered Users Posts: 11,171 ✭✭✭✭B.A._Baracus


    Cheers for making the thread. I was trying to find out the answer for it too.

    So pretty much, and just to confirm, if you buy a share of a US company and that share gives you 2 dollars per year. The US revenue will deduct 15% (30c in this case) from you. When you go to pay your taxes in Ireland you will be deducted a further 5% to round up to 20% tax paid.

    Do you have to file a form or anything or is this automatic?


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    #4
    Taylor365
    Registered Users Posts: 2,994 ✭✭✭Taylor365


    B.A._Baracus wrote: »
    Cheers for making the thread. I was trying to find out the answer for it too.

    So pretty much, and just to confirm, if you buy a share of a US company and that share gives you 2 dollars per year. The US revenue will deduct 15% (30c in this case) from you. When you go to pay your taxes in Ireland you will be deducted a further 5% to round up to 20% tax paid.

    Do you have to file a form or anything or is this automatic?
    No. Go to myAccount and when submitting/reviewing a year for income/tax purposes, there is a section for "Other income" and in there should be dividends. There are little tool-tips to let you know what exactly to input.


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    #5
    The J Stands for Jay
    Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    irishlad. wrote: »
    Revenue know you've already paid 15%.

    So the €56.96 is the other 5% to make up 20% tax.

    How do you inform revenue if you've been taxed on US dividends at 30%?


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    #6
    namloc1980
    Registered Users Posts: 18,064 ✭✭✭✭namloc1980


    McGaggs wrote: »
    How do you inform revenue if you've been taxed on US dividends at 30%?

    The Revenue don't care about that. They'll only allow 15% DWT under the tax treaty with the US. Who is you broker? You need to fill out a W-8BEN form to ensure you get the benefit of the Tax treaty rate of 15% otherwise it'll default to the standard 30% rate.

    https://www.investopedia.com/terms/w/w8form.asp


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    #7
    The J Stands for Jay
    Registered Users Posts: 5,650 ✭✭✭The J Stands for Jay


    namloc1980 wrote: »
    The Revenue don't care about that. They'll only allow 15% DWT under the tax treaty with the US. Who is you broker? You need to fill out a W-8BEN form to ensure you get the benefit of the Tax treaty rate of 15% otherwise it'll default to the standard 30% rate.

    https://www.investopedia.com/terms/w/w8form.asp

    I'm using Degiro. They're not playing ball because I don't have an Irish Bank account


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