Tax Treatment of Dividend

Tax Treatment of Dividend

Tax Treatment of Dividend

Budget 2014 contains the following provisions regarding Deposit Interest Retention Tax (DIRT): From 1st January 2014 all credit union share dividend and deposit interest paid to members will be subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT. The DIRT rate is 41%.

The only members who can be exempt are:

  • Members aged over 65 whose total income is less than the relevant limit, currently €18,000 for an individual and €36,000 for a married couple. For married couples, only one of the spouses needs to be over 65. To avail of this exemption, you must sign a self-declaration form DE1. This form is available in your credit union and from our Forms/Brochures menu. This form is a declaration that you (or your spouse) are aged over 65 and that your total income is less than the relevant limit.
  • Members who are permanently incapacitated. Such members should either contact their local Revenue Commissioners office directly or contact a service body such as the Irish Wheelchair Association. Credit unions have no role in approving the exemption in these cases.

Download a DIRT DE1 Form by clicking the link below:

DIRT DE1 Form 

If you do not complete the self-declaration form, the credit union will be obliged to deduct DIRT from your dividend or interest. You will then have to apply directly to the Revenue Commissioners for a refund of this DIRT (if you are eligible). If we have deducted DIRT from your account and you feel that you may be exempt you will need to claim a refund of the DIRT back from revenue yourself. You can visit www.revenue.ie for more details.