Tax and your dividend

On the 1st January 2002 new regulations were introduced which changed the system of taxation of Credit Union dividends. You now have two share account options:

Ordinary Share Account

You currently have an Ordinary Share Account with us and you can continue to save in this way. As has always been the case, your dividend is taxable at your marginal rate (presently 0%, 20% or 41%). The responsibility remains with you the member, to include your dividend income in your annual Return of Income to the Revenue.

Special Share Account

You may opt in writing to change your account to a Special Share Account. With this account, the Credit Union would deduct DIRT (Deposit Interest Retention Tax) currently at 27% from your dividend. This would fully satisfy your tax obligations in respect of your dividend.

Please note that members aged 65 years and over, whose annual income does not exceed €19,000 if single or widowed, or €38,000 if married, may opt to be exempt from DIRT by completing a form DE1 which is available at the office.

If you wish to convert your account to a Special Share Account you must complete a form which is available at the office.

Please contact us for further details.

Reporting Dividends

Following regulations introduced in March 2010, Credit Unions are now providing the Revenue Commissioners with details of accounts in the following circumstances:

- Where a dividend in excess of €635 is earned in any year.

- The first dividend earned on any new account opened since 1st January 2008 (regardless of the €635 threshold)

- To comply with the above, we are required to obtain PPS numbers when new accounts are opened.

- The full regulations are available on the Revenue Commissioners website www.revenue.ie

- If you have concerns about your tax affairs, you should contact your financial/tax adviser or your local tax office.