Budget 2014 contained the following provisions regarding Deposit Interest Retention Tax (DIRT):

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

Download the DE1 Declaration Form.