TAXATION of Dividend on Shares and Interest on Deposits. 
   

Members have a variety of Savings options in Cashel Credit Union Limited. These options enable members to optimize their interest earned and to satisfy their D.I.R.T. taxation obligations where they exist. D.I.R.T. , is a tax on the interest paid to liable individuals, that is collected by financial institutions and returned to the Revenue Commissioners.

Members are advised to seek professional advice from a qualified taxation advisor.

REGULAR SHARE ACCOUNTS

(Traditional Credit Union Accounts)

The onus to declare dividend earned rests with the member, not the credit union. If the Member reports his/her dividend, and is liable for DIRT, and advises the Credit Union accordingly, DIRT will be applied at his/her marginal rate of income tax. If a member is liable for DIRT and fails to declare his/her dividend, the Revenue Commissioners may initiate a prosecution.

SPECIAL SHARE ACCOUNT

If authorised in writing by the member, Cashel Credit Union Limited will deduct DIRT from dividend at the rate of 25% and return it to the Revenue Commissioners. The member has no further liability to DIRT on this dividend and is not required to make an individual declaration in respect of this account to the revenue Commissioners for DIRT purposes. The member should check annually in January that his DIRT remittance has been made to the Revenue Commissioners on this account.

 

MEDIUM AND LONG TERM ACCOUNTS

  • A member may hold either a Medium (3 years) or Long (5 years) Term Account, but not both.
  • Medium Term amounts must remain invested for 3 years and may earn up to €480 DIRT free annually.
  • Long Term amounts must remain invested for 5 years and may earn up to €635 DIRT free annually.
  • Amounts earned above these thresholds are taxed at 25%.
  • Members wishing to open a Special Share or Term Account must complete the appropriate forms, available from staff.

 

DEPOSIT (Savings 1, Savings 2, etc) ACCOUNTS

DIRT is automatically deducted on interest earned on these accounts at the rate of 25%. The member is not required to make further DIRT returns on these accounts.

 

SSIA DEPOSITS

Taxation on interest earned is payable in accordance with standard SSIA regulations.

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Double Click below to find out how to change the D.I.R.T. designation of your account.

Initiation of Change of Designation Instruction Form