Deposit Interest Retention Tax
Deposit Interest Retention Tax (D.I.R.T.), at the rate of 41% (from the 1st January 2014) is deducted at source by deposit takers (e.g. banks, building societies, Credit Unions, Post Office Savings Bank, etc.) from interest paid or credited on deposits of Irish residents.
The above D.I.R.T. rate was:
- 33% for the period 1st January 2013 to the 31st December 2013
- 30% for the period 1st January 2012 to the 31st December 2012
- 27% for the period 1st January 2011 to the 31st December 2011
- 25% for the period 8th April 2009 to the 31st December 2010
- 23% for the period 1st January 2009 to the 7th April 2009 and
- 20% for the period 1st Janury 2002 to the 31st December 2008.
D.I.R.T. does not apply to
- Interest on deposits beneficially owned by non-residents,
- Deposits of Companies within the charge to Corporation Tax,
- Deposits of Revenue approved Pension Schemes, and
- Deposits of persons who are entitled to charitable exemption from tax.
A higher D.I.R.T. rate applied to interest earned on a deposit where the interest cannot be calculated annually or more frequently and the interest cannot be determined until it is paid. This higher D.I.R.T. rate has been abolished, as and from the 1st January 2014, and the D.I.R.T. rate of 41% applies to any interest paid or credited on these deposits on or after the 1st January 2014.
The higher D.I.R.T. rate was:
- 36% for the period 1st January 2013 to the 31st December 2013
- 33% for the period 1st January 2012 to the 31st December 2012
- 30% for the period 1st January 2011 to the 31st December 2011
- 28% for the period 8th April 2009 to the 31st December 2010
- 26% for the period 1st January 2009 to 7th April 2009 and
- 23% for the period 1st January 2002 to the 31st December 2008
D.I.R.T. is a final liability for income tax purposes, i.e. the payment of retention tax at the standard rate by individuals liable to income tax at the higher rate is regarded as satisfying the individual’s full liability to this tax.
However, in certain circumstances, an individual will also be liable to pay PRSI in respect of the Deposit Interest received.
The Universal Social Charge (USC) does not apply to Deposit Interest that has been subjected to Deposit Interest Retention Tax.
If an individual is aged 65 or over or they are permanently incapacitated, they may be entitled to a refund of DIRT. For more information see DIRT Repayments. For forms applicable to DIRT Exempt Accounts, please see Forms