D.I.R.T, Dividend & You
What you need to know.
As a member of Ballinasloe Credit Union you are required to declare your dividend to the Revenue Commissioners. However there are options available to you to comply with Revenue requirements and/or discharge your liability at source i.e. at the credit union.
WHAT ARE THE OPTIONS?
REGULAR SHARE ACCOUNT
Under this option, members can have their dividend paid out without deduction of DIRT. The member is obliged by law to declare the dividend to the Revenue Commissioners. The amount of dividend must be included in the member’s annual tax return to the revenue.
ARE DETAILS OF MY ACCOUNT PASSED ONTO REVENUE?
In May 2008, regulations were introduced requiring banks, post offices and all other financial institution including credit union’s, to provide Revenue with details of the names and address’s of account holders who receive a dividend or (interest) payment in excess of €635 in any year, and the amount of dividend paid to their account.
This regulation will come into operation for credit unions in respect of dividends in the year ended September 30th
IS THIS REQUIRED EVEN IF I PAY DIRT?
This information is required irrespective of whether DIRT has been deducted or not. However the revenue is advised if DIRT has been deducted.
ARE THERE ANY OTHER CHANGES IN THE REGULATIONS?
Yes. Under the new regulations, Revenue must be provided with the details of all new members who open accounts after January 1st
2009. These details will now include the member’s P.P.S (tax reference) number, which will be required to open an account with any financial institution after that.
EXEMPTIONS FROM PAYING DIRT
Since 2007 certain members may be exempt from paying DIRT tax – subject to certain conditions
Exemptions include: Members aged 65 or over, members who’s income does not exceed €20,000 (individual) €40,000 (Married Couple), Member Under 18 years of age, Member Over 18 and in full time education, Member incapacitated either physically or mentally, Member permanently Incapacitated (this exemption is available to any member who’s spouse is permanently incapacitated subject to certain criteria).
If you are unclear as to whether you qualify for the exemption, then you should seek a ruling from the tax office.
This Information is designed to provide basic information for members of Ballinasloe credit union, IT IS NOT MEANT TO BE A COMPREHENSIVE REVIEW OF CURRENT TAXATION ISSUES