Dara Calleary (Mayo, Fianna Fail)
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To ask the Minister for Finance if he will clarify if credit union special share dividends are exempt from DIRT tax for persons over 65 years of age. [10861/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that where an individual or their spouse or civil partner is aged over 65, and their income does not exceed the appropriate income tax exemption limit, they are exempt from Deposit Interest Retention Tax (DIRT) arising on credit union special share dividends. The current exemption limits are €18,000 in the case of a single person and €36,000 in the case of a married couple/civil partnership. Both the age and the income criteria must be met for the exemption to apply. Since April 2007, this exemption became automatic on the submission of a declaration to the credit union where the account is held. To qualify for the automatic exemption, the individual must declare on form DE 1 that they or their spouse or civil partner are aged 65 years or over during the year and that their total annual income does not exceed the exemption limit. Where the individual’s circumstances change following the submission of this declaration form, they are required to notify the financial institution to that effect. Where a person’s income exceeds the relevant exemption limit by a small amount, he or she will not be entitled to an exemption or to have the interest paid without deduction of DIRT, but may be entitled to a partial refund of the tax deducted.