Dáil Éireann Debate, Tuesday - 22 October 2013
290. Deputy Willie O'Dea asked the Minister for Social Protection if PRSI will be deducted at source from interest on deposit accounts from 1 January 2014; or if an alternative method of collection is proposed. [44654/13]
View answer291. Deputy Willie O'Dea asked the Minister for Social Protection if financial institutions will be obliged to retain details of individuals' PPS numbers to facilitate the deduction of PRSI from interest on deposit accounts from 1 January 2014. [44655/13]
View answer292. Deputy Willie O'Dea asked the Minister for Social Protection the yield that is expected in 2014 from collection of PRSI on unearned income; and the breakdown of the total by category of unearned income. [44656/13]
View answer302. Deputy Róisín Shortall asked the Minister for Social Protection if PRSI will be payable on interest on savings in 2014; to whom it will apply; and the rate of same. [44738/13]
View answer307. Deputy Róisín Shortall asked the Minister for Social Protection how the imposition of PRSI on interest on savings in 2014 will be applied in respect of accounts held in the name of children. [44787/13]
View answerI propose to take Questions Nos. 290 to 292, inclusive, and 302 and 307 together.
In Budget 2013 it was announced that from 1 January 2014, the exemption from PRSI applying to employed contributors and occupational pensioners aged under 66 years, whether that pension arises from that person's own employment or the employment of his or her spouse or civil partner, whose only additional income is unearned income, will be abolished. This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings will be liable to PRSI at 4% provided the person is a chargeable person in accordance with the Revenue definition.
A chargeable person does not include a PAYE taxpayer (i) who does not have other income or (ii) who has an element of other insignificant income that is fully taxed through the Office of the Revenue Commissioners PAYE system (Revenue regard amounts not exceeding €3,174 as insignificant). Individuals with income exceeding €3,174 must pay and file under Revenue's self-assessing system. This income will be chargeable to PRSI at 4% (Class K). This new PRSI charge will not give rise to any social insurance benefits.
The financial institutions will not be involved in the collection of any PRSI liability. As such the financial institutions will not be obliged to retain details of individual's PPS numbers. Collection will be through the Revenue self-assessment system.
PRSI is payable by any person over the age of 16 and under pensionable age who is employed or self-employed. In determining whether or not PRSI is chargeable on accounts held in the name of a child the relevant issue will be the treatment by the Office of the Revenue Commissioners of the interest arising. If chargeable on a child, who is under 16, in his/her own right, there will be no PRSI charge.
The expected yield for this measure is €14m in 2014 and €20 million in a full year.
