Taxes Consolidation Act 1997 section 267M

Tax rate applicable to certain deposit interest received by individuals

Section 267M sets out the tax rates that apply to deposit interest received by individuals from banks and similar institutions located in other EU Member States and in non-EU countries.

• EU-sourced deposit interest ('specified interest') is taxed at the DIRT rate of 33%, acting as a final liability tax.
• Non-EU deposit interest ('foreign deposit interest') is taxed at the individual's marginal rate — standard rate or higher rate depending on total income.
• Both favourable rates are conditional on the taxpayer filing and paying on time by the specified return date for the year of assessment.
• Where the return is late, all deposit interest — whether EU or non-EU sourced — is charged at the higher rate of 40%.