Seán Canney
Ceist:118. Deputy Seán Canney asked the Minister for Finance if persons on invalidity pensions are exempt from DIRT tax on savings; and if he will make a statement on the matter. [8553/24]
Amharc ar fhreagraThursday, 22 February 2024
Ceisteanna (118)
Freagraí scríofa
Savings with an Irish bank, or other deposit taker such as a credit union or An Post, are generally subject to Deposit Interest Retention Tax (DIRT) at a rate of 33% (USC does not apply and PRSI may apply). DIRT will be deducted by the deposit taker unless the account is specifically exempt.
Whether or not an account held by a person in receipt of an invalidity pension is exempt from DIRT depends on that person’s specific facts and circumstances. There is no automatic DIRT exemption for a person in receipt of an invalidity pension. However, the following exemptions may, depending on the particular facts and circumstances, be relevant to those in receipt of invalidity pensions:
1. DIRT does not apply where a deposit account is held by an individual who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself;
2. DIRT also does not apply where a deposit account is held by an individual who is 65 years or older, or whose spouse / civil partner is 65 years or older, and whose income is below certain thresholds.
I am advised by Revenue that further information on these exemptions, and how to claim them if the exemption is applicable, is set out in Revenue’s Tax and Duty Manual 08-04-08, which is available on the Revenue website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-08/08-04-08.pdf