Deposit Interest Retention Tax (DIRT)

Overview

DIRT is deducted by Irish financial institutions from deposit interest paid or credited to the accounts of Irish residents.

The financial institutions include:

  • a licensed bank of any of the European Union (EU) Member States
  • a building society of any of the EU Member States
  • a trustee savings bank
  • the Post Office Savings Bank
  • a credit union.

DIRT is a final liability tax, meaning that the financial institution deducts the tax before they pay you the interest. You can request a statement from your provider of the amount of DIRT they deducted. It is up to the financial institution to decide if a deposit is subject to DIRT.

In some circumstances, you may also have to pay Pay Related Social Insurance (PRSI) on the interest you received. Universal Social Charge (USC) does not apply to deposit interest.

Next: How do you declare DIRT?