Brendan Griffin
Question:79. Deputy Brendan Griffin asked the Minister for Finance if he will consider reviewing the rate of DIRT tax to incentivise persons to invest; and if he will make a statement on the matter. [32281/14]
View answerThursday, 17 July 2014
Questions (79)
Written answers
It is the standard practice for the Minister for Finance to review taxation policy in the run up to the annual Budget. It is also a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that could be the subject of Budget decisions
However, speaking generally, the Government decided to increase the rate of Deposit Interest Retention Tax (DIRT) (previously 33%) to 41% in Budget 2014. The higher rate of DIRT (previously 36%) for interest paid less frequently than annually was abolished, and all deposit interest is now liable to DIRT at the same rate (41%).
Exemptions from DIRT may apply for the following persons in certain circumstances -
- Individuals aged over 65 (subject to income limits)
- Permanently Incapacitated Individuals
- Companies, Pension Funds and Charities (Irish resident companies pay tax on investment income at 25%)
- Non-Resident Account Holders
There are alternative savings products available which are tax free (Savings Bonds, Saving Certificates, Instalment Savings and the National Solidarity Bonds).
The decision to raise the rate of DIRT in Budget 2014 was taken to encourage spending in the economy, with a view to stimulating growth and employment and to raise additional revenues.