Consumers should be aware of the tax implications of savings and investments. Financial investments or assets can be subject to stamp duty, capital gains tax and deposit interest retention tax (commonly referred to as DIRT).

DIRT

Any interest earned on money saved in deposit accounts with financial institutions, such as banks, building societies and post offices, is subject to a tax called deposit interest retention tax. For 2018, DIRT is charged at 37% on all interest payments. It was announced in Budget 2017 that the DIRT rate would decrease by 2% each year from 2018 to 2020 until it reaches 33%.

Stamp duty

When you buy shares you must pay a once-off stamp duty on the value of those shares. This is usually done through the stockbroker. Stamp duty is typically 1%.

Income tax, PRSI and USC

Any dividend payments you receive from shares held or other investments will be subject to income tax, PRSI and USC.

Capital Gains Tax (CGT)

Capital gains tax (CGT) is a tax charged on the profit, or capital gain, you make on the sale of shares. For example, if you bought shares at €100/share and offloaded the stock at €120/share, you will be charged CGT on the €20 gain in the value of the share/asset. The standard rate of CGT in Ireland is 33%.