Dáil Éireann Debate, Tuesday - 27 July 2021
447. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by increasing the rate of dividend withholding tax to 30 and 33 %, respectively; and if he will make a statement on the matter. [41356/21]
View answerI am advised by Revenue that the ‘Ready Reckoner’, which is available at link: www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf , shows on page 13, the estimated yield from changes to the rate of Dividend Withholding Tax (DWT). The proposed increases can be derived on a pro rata basis from those indicated in the published table.
For the convenience of the Deputy, an increase in the rate of DWT from 25% to 30% would yield approximately €111m, and an increase in rate of DWT from 25% to 33% would yield approximately €178m.
As DWT is not a final liability tax, it should be noted that any increase in receipts from a higher withholding rate would represent a temporary cash-flow benefit to the Exchequer. The final liability would depend on the income tax position of the recipients of the dividends.
