Deposit Interest Retention Tax (DIRT)

If you save money with a bank or other financial service provider, the money is called a deposit, and you may get paid interest on it.

The tax on this interest is called Deposit Interest Retention Tax (DIRT).

DIRT is charged at 33% on all interest payments.

If you are over 65 or have a disability, you may qualify for an exemption or refund.

Credit union deposit interest and share dividends are also subject to DIRT.

If you are buying a home, the Help to Buy Scheme provides for a refund of DIRT.

DIRT is deducted before the interest is paid to you. You are entitled to get a statement of the DIRT deducted if you ask for it.

If you have paid DIRT, you do not have to pay any further income tax or Universal Social Charge (USC) on the interest, but you must declare the interest as income if you are making an income tax return.

In some circumstances, you may have to pay PRSI on deposit interest.

DIRT does not apply to interest on deposits owned by:

• Companies that are liable to corporation tax
• Charities
• People who are not resident for tax in Ireland
• Revenue-approved pension schemes

If you are exempt from DIRT, you can apply to have your deposit interest paid without any deduction of DIRT. You may be exempt if you, or your spouse, have a low income and are:

• Over 65 or
• Permanently incapacitated. This means unable to earn money to support yourself due to mental or physical illness or disability.

If your income is slightly over the limits for exemption, you may be eligible for a refund if you have enough income tax credits and reliefs to reduce the amount of DIRT you owe.

Over 65 years of age

Exemption

You can apply for an exemption, so that your deposit interest is paid without the deduction of DIRT, if:

• You or your spouse are over 65 and
• Your income is less than the low-income exemption limits for people aged over 65

A joint account can be exempt if it is shared with your spouse.

To apply for exemption, complete form DE1 (pdf) and return it to your financial institution.

Refund

If your income is over the low-income exemption limit, you will not be exempt from DIRT, but you can apply for a refund of some of the DIRT that has been deducted if:

• Your income is marginally over the exemption limit or
• Your tax credits amount to more than the tax due on your other income

To apply for a refund, complete Form 54 Claims (pdf) and return it to Revenue.

Permanently incapacitated

Exemption

You can get your deposit interest paid without the deduction of DIRT if:

• You are permanently incapacitated from maintaining yourself and
• Your tax credits amount to more than the tax that would be due on your other income for the year

To apply for exemption, complete form DE2 (pdf) and return it to Revenue.

Refund

If your tax credits do not fully cover the income tax you owe, but you have enough credits to reduce some of the DIRT paid, you can apply for a refund using Form 54 Claims (pdf).

If you are not resident in Ireland for tax, and do not pay tax in Ireland, you may get your Irish deposit interest paid without the deduction of DIRT. You do not have to be a resident of a country that has a double taxation agreement with Ireland to apply for a DIRT exemption. You should contact your financial institution to find out if you can be exempt from paying DIRT. You will have to complete a Non-Residence Declaration.

If DIRT has already been deducted from your Irish deposit interest, you can get a refund if Ireland has a double taxation agreement with the country you are resident in. DIRT will be refunded under the terms of that agreement. Fill in IC5 form (pdf) to apply for a refund of DIRT.

You can download detailed pdf guides to DIRT refunds and exemptions from the ‘Further Guidance’ section on Can you claim a DIRT refund? on revenue.ie.