From 1st January 2014 all credit union share dividend and deposit interest paid to members is subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The current DIRT rate is 33%.

The only members who are exempt are as follows:

• Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exception, you must sign a self declaration DE1 Declaration Form. This form is available in the credit union and is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.
• Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association and the Credit Union has no role in approving the exemption in these cases. If you do not complete the self-declaration form, Mallow Credit Union is obliged to deduct DIRT from your dividend. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible).

How to know if you are ordinarily resident for tax purposes

If you have been tax resident in Ireland for three consecutive tax years, you become ordinarily resident from the beginning of the fourth tax year.

If you leave Ireland after this time, you continue to be ordinarily resident for three consecutive tax years. For these three years you must pay Irish tax on your worldwide income except for:

• Income from a trade or profession, no part of which is performed in Ireland
• Income from an office or employment, where all the duties are performed outside Ireland
• Other foreign income, for example investment income, if it is €3,810 or less. If it is more than €3,810, the full amount is taxable

Revenue forms:

• DE1-Form
• DE2-Form

The Deposit Guarantee Scheme (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits.

The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme.

The DGS protects:

• Depositors (i.e. credit union members) if a bank, building society and or credit union authorised by the Central Bank of Ireland is unable to repay deposits
• Eligible deposits up to €100,000 per person per institution
• Current accounts, deposit accounts, share accounts in banks, building societies and credit unions

The Deposit Guarantee Scheme is obliged to issue compensation to depositors duly verified as eligible within 20 working days of a credit institution failing.

Each credit institution is required to maintain a Deposit Protection Account (DPA) equivalent to 0.2 percent of their total deposits, in order to fund the DGS. The Deposit Guarantee Scheme is part of the Central Bank of Ireland’s strategy to ensure that the best interests of consumers of financial services are protected.

The Irish DGS protects deposits held at EU branches of authorised Irish institutions. Deposits held with credit institutions that are authorised in another European Economic Area Member State are covered by that country’s deposit guarantee scheme.

Credit Unions covered by the DGS are listed in the Register of Credit Unions, available here.

We are pleased to announce the removal of the Savings Cap on members’ accounts. From 14th February 2024, a Mallow CU member can now save up to a maximum of €100,000 across all their accounts (as protected by DGS). The change from €40,000 to €100,000 will apply automatically.

New members who join are no longer subject to a first-year restriction of €10,000, they too can now have up to €100,000.

This decision will be reviewed on an ongoing basis by the Board of Management and Directors.