Under current legislation Ballina Credit Union must report to the Revenue Commissioners each year details in respect of dividend or interest payments to members in excess of €635. In addition, Ballina Credit Union is obliged to report to the Revenue Commissioners the first relevant payment of dividend or interest on new accounts opened since 1st January 2008, irrespective of the size of the payment.
Deposit Interest Retention Tax (DIRT) @ the rate of 41% is deducted by the credit union and remitted to the Revenue Commissioners from any interest paid on a deposit account. Once DIRT has been deducted the member has no further taxation liability on that interest and does not have to declare it in an annual tax return.
SPECIAL SHARE ACCOUNTS
A member may opt to hold their savings in a special share account. Any dividend paid will have DIRT deducted as with a deposit account. No further taxation liability will arise on that dividend and the amount earned does not have to be declared in an annual tax return.
MEMBERS AGED OVER 65 or PERMANENTLY INCAPACITATED
A member in this category whose annual income is below €18,000 (single) or €36,000 (joint) may make a claim for the repayment of any DIRT deducted. Alternately, that member can make can make a self declaration on Form DE1 available in the Credit Union or click here, and any interest or dividend thereafter will be paid without deduction of DIRT.