Mary Harney
Question:71 Miss Harney asked the Minister for Finance the current position regarding the taxation of United States social security benefits payable to people resident in this country. [4179/96]
Written Answers. - Taxation of US Social Security Benefits.
The existing double taxation convention between Ireland and the United States, which is in existence for over forty years, does not contain any specific provisions relating to the taxation of social security payments. Under the terms of United States domestic legislation, nonresident aliens are liable to withholding tax on social security payments at a rate of 30 per cent of 85 per cent of the social security payments, i.e. 25.5 per cent overall. The question of US withholding tax on social security payments is being reviewed in the context of the current renegotiation of the Ireland/US Double Taxation Convention. In the meantime, under the provisions of the existing convention, credit for the tax deducted by the US tax authorities is allowed against Irish tax on the same income.