Financial Resolution No. 9 gives legislative effect to the budget announcement that the rates of direct interest retention tax would be increased by 2% with effect from 8 April. The resolution amends section 256(1) of the Taxes Consolidation Act 1997 to give statutory effect to the new rates of DIRT applicable to deposits held in banks and other financial institutions. The changed rates are as follows: the general 23% rate which applies to deposit interest, including deposit interest arising on special savings accounts and special term accounts, has been increased to 25%; and the 26% rate is being increased to 28% in the case of interest which was not payable annually or at more frequent intervals and where the interest cannot be calculated until the maturity of the investment. This includes investments such as tracker bonds, where the amount of interest payable depends on the changes in a financial or other index or the number of years.

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