1. Schedule D Case III Sources of Income
Interest Income not subject to Irish tax at source
Dividends on ordinary credit union share stock
Income from foreign securities and possessions

2. Schedule D Case III Basis of Assessment
Income taxed in the year of assessment in which it arises.
For Case III income arises when it is received.
However, foreign trading income and foreign rental income calculated in the same way as domestic trading and rental income.

3. Schedule D Case III Allowable Deductions
No deductions against most sources of Case III income
Deduction for foreign tax allowed when not allowed as a credit under a double taxation agreement
Foreign rental income is calculated in the same way as Irish rental income
Foreign trading income calculated in the same way as Irish trading income

4. Schedule D Case III UK Dividends UK Interest
Taxed on the amount received. UK tax deducted is ignored.
UK Interest
Taxed on the gross interest. UK tax can be reclaimed from the UK tax authority.

5. Schedule D Case IV Sources of Income
Income subject to Irish tax at source
Dividends on special credit union share accounts
Shares received in lieu of dividends
Income received following the cessation of a trade
Profits from unlawful activities
Certain maintenance payments

6. Schedule D Case IV Basis of Assessment
Income taxed in the year of assessment in which it is received.

7. Deposit Interest Retention Tax (DIRT)
Financial Institutions obliged to deduct DIRT from Deposit Interest earned on Irish bank accounts.
Current rate of DIRT is 41%.
DIRT is a full discharge of income tax on deposit interest. Interest income from which DIRT has been deducted will never be subject to the standard rate of tax of 20%

8. Exempt from DIRT Non-resident individuals
Over 65s when their income does not exceed relevant thresholds
Permanently incapacitated individuals
Charities
Pension Funds

9. Taxation of Deposit Interest
Deposit Interest must be included in the Income Tax Computation
The Gross amount is included not the net amount
May be necessary to regross the net amount
An extra line is included in the tax calculation for the 41% rate
A credit is given for DIRT paid

10. Example Mike has the following income: Salary €40,000
PAYE Deducted €5,000
Deposit Interest (net received) €4,020
Tax Credits €3,300

11. Example Mike is 28 and has the following income: Salary €20,000
PAYE Deducted €700
Deposit Interest (net received) €3,540
Tax Credits €3,300

12. DIRT Credit
The DIRT credit is a non-refundable credit for under 65 year olds
The DIRT credit is a refundable credit for over 65s under the exemption thresholds

13. Schedule F – Irish Dividends
Dividends or distributions from Irish resident companies are taxed under Schedule F.
Basis of Assessment
Dividends are taxed in the tax year in which they are received.
The companies financial year for which the dividend is paid is irrelevant.

14. Dividend Withholding Tax
The company paying the dividend is obliged to deduct tax at the standard rate (20%) before they pay the dividend.
The individual receives the net dividend.
The gross dividend is included in the income tax computation.
A Refundable Tax Credit is given in the computation for the tax withheld.