Taxation

Traditionally, members of Credit Unions were expected to include their dividends when making tax returns each year. Individual Credit Unions were not required to provide information on dividends to the Revenue. Having said that, many Credit Union members are not liable for income tax, particularly with tax levels reducing in recent years. Such members have no tax liability on dividends.

FROM 1 Jan 2002

Members have had a choice as to how dividends on their shares are taxed:

  1. Continue the traditional way, as above.
  2. Open a “Special Share Account”, with automatic deduction of DIRT currently at 30% from your dividend, in full settlement of your tax liability. You are not required to make any declaration to the Revenue and the Credit Union will return all tax to the Collector General on a NO-NAME basis, subject to the changes made by the Revenue in 2008 (See below).

Unless you instruct us to the contrary, we have assumed that you have opted for 1 above.

DIRT FOR OVER 65′S AND PERMANENTLY INCAPACITATED PEOPLE

From 1st January 2007, if you or your spouse are aged over 65 during the year and your total income during the year does not currently exceed 18,000 euros (Single/Widowed) or 36,000 euros (Married), you can claim exemption from the deduction of DIRT. A Declaration form must be completed and forms are available from the Credit Union.

Permanently incapacitated people may claim the exemption if income does not exceed a certain level but exemptions are processed through the local revenue office.

FROM 2008

It was announced in May 2008 that dividends or deposit interest over 635 euro a year will have to be reported to the Revenue. This will apply to all deposit accounts from 2008 and all Credit Union dividends from the 2009 dividend onwards. To stop prople splitting their accounts to avoid tax, all interest in the first year of a new account must be reported from 2008.

FROM 2012

The DIRT rate has increased to 30% for payments of dividend or deposit interest earned also from the 1st Jan 2011, the age expemtion limits for members aged over 65 has been reduced from €20,000 to €18,000 for an individual and from €40,000 to €36,000 for a married couple.

DEPOSIT ACCOUNTS

Since January 1st, 2002, interest on Credit Union deposit accounts (such as the Credit Union Gold 1 Year Deposit Account) has been subject to DIRT currently at 30%, deducted automatically from the interest.

For more information see www.revenue.ie

Further details available at the Credit Union offices.