Dáil Éireann Debate, Thursday - 10 November 2016
125. Deputy Bernard J. Durkan asked the Minister for Finance the current level of personal savings after which deposit interest retention tax, DIRT, is chargeable; and if he will make a statement on the matter. [34281/16]
Amharc ar fhreagraI am advised by Revenue that Deposit Interest Retention Tax (DIRT) at the rate of 41% is currently deducted from interest earned on most relevant deposits. I am reducing the rate of DIRT in the Finance Bill to 39% with effect from 1 January 2017. This will be the first of four planned decreases which will see the DIRT rate reduced from 41% to 33% by 2020.
Relevant deposits are all deposits other than those held by certain state bodies, non-residents, companies or pension schemes or debts on securities listed on a stock exchange. Regarding personal savings, there is no minimum threshold amount after which DIRT is applied to an individual's savings account. There are however certain circumstances where an exemption from DIRT may be availed of. The following qualify for an exemption from DIRT:
Special Term Accounts
Special term accounts opened prior to 16 October 2013 could earn tax free interest of up to €480 per annum in the case of medium term accounts, and €635 per annum in the case of long term accounts.
Individuals aged over 65:
Individuals are exempt from DIRT on their interest income provided they or their spouse or civil partner are aged 65 or over, and their total income in a year (including the interest) is below the annual exemption limit. The annual exemption limits, for 2016, are as follows:
- €18,000 (in the case of a single person) and
- €36,000 (in the case of a married couple or civil partnership).
Permanently Incapacitated Individuals: An exemption from DIRT also applies where an individual, his or her spouse or civil partner is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself and is not liable to pay income tax because of the level of his or her income.
Non-Resident Account Holders:
Deposit accounts where all of the interest on the deposit is beneficially owned by a person or persons resident outside the State are exempt from the application of DIRT. However a joint account owned by an Irish resident and a foreign resident would be subject to DIRT.
