Taxes Consolidation Act 1997 section 256

Interpretation (Chapter 4)

Section 256 defines the terms and expressions used in the DIRT (deposit interest retention tax) provisions of Chapter 4 of Part 8, including the rate of tax, what constitutes a deposit and a relevant deposit taker, and the categories of deposit that are exempt from DIRT.

• DIRT is the tax that financial institutions must deduct from interest on deposits; the rate has been 33% since 2020, having been reduced from 41% in 2014 through a series of annual reductions.
• Relevant deposit takers include licensed banks, building societies, credit unions, the Post Office Savings Bank, and Irish branches of EEA-authorised institutions; industrial and provident societies and other unlicensed deposit takers are outside the DIRT scheme.
• A wide range of deposits are excluded from DIRT, including inter-bank deposits, deposits by companies and pension schemes (where tax reference numbers are provided), deposits by non-residents (with a declaration), deposits by charities, PRSA providers, and PEPP providers.
• Specific exemptions from DIRT apply to individuals aged 65 or over whose income is below the exemption limit, permanently incapacitated individuals, and deposits solely relating to Magdalen laundry or Mother and Baby Institutions compensation payments.