If you have a deposit account you’re paying Deposit Interest Retention Tax (DIRT) on; the government’s new commencement orders will impact you. The Minister of Finance has signed two Commencement Orders bringing into operation some of the provisions of the Finance Act 2010.The orders will lead to DIRT being paid quarterly (currently paid twice yearly) and statements being issued to depositors from deposit takers regarding their interest and DIRT payments.
The first Commencement Order relates to deposit takers and provides that DIRT deducted by deposit takers must, with effect from the 1st January 2011, now be paid quarterly by deposit takers to the Revenue Commissioners rather than twice yearly under the previous arrangements.
The second Commencement Order relates to the issue of statements showing details of Deposit Interest Retention Tax deducted. As a result of this deposit takers are obliged from 1 January 2011 to issue a statement to the person entitled to the interest giving the following information:
- the amount of the interest payment,
- the amount of DIRT withheld,
- the net amount of the interest payment,
- the date of the interest payment.
Prior to this the relevant deposit taker was obliged to provide such information only on foot of a request from the person entitled to the relevant interest. People in receipt of interest on the savings will therefore note the above changes in the way they are advised on the interest earned in their accounts.