TAX TIP: DEPOSIT INTEREST, DIRT & THE LEVIES

DIRT deducted at the standard rate of tax by Irish financial institutions satisfies the individual’s full liability to income tax on the interest income but this income must be disclosed in the individual’s return. The health levy of 2%/2.5% is also payable on interest income. The Income Levy does not apply to EU sourced deposit interest


KEY TAX DATES FOR AUGUST 2010

14th
P30 monthly return and payment for July 2010

14th
RCT30 monthly return and payment for July 2010

21st
Corporation tax preliminary payment for accounting periods ending between 1 – 31 September 2010

21st
Corporation tax returns for accounting periods ending between 1 – 30 November 2009

21st
Corporation tax balancing payment due for accounting payments ending between 1 – 30 November 2009

TAX TIP: INTEREST RELIEF ON INVESTMENTS

Tax relief on interest on borrowings to invest in a company is given at the marginal rate of tax where the borrower is an employee/Director who has a material interest in the company i.e. greater than 5%.

An individual should therefore minimize borrowings for investments where little or no interest relief is available e.g. an investment in quoted shares.

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