Bernard Durkan (Kildare North, Fine Gael)
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271. To ask the Minister for Finance the current structure relating to DIRT on investments and long-term investments; if concessions in respect of DIRT exist for persons who are unemployed or on low incomes; and if he will make a statement on the matter. [4796/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the legislation governing the operation of appropriate taxon interest earned on deposits held in the State, referred to as Deposit Interest Retention Tax (DIRT), is set out in Chapters 4 and 5 of Part 8 of the Taxes Consolidation Act 1997 (the Act).

Except in the circumstances listed below, as and from the 1 January 2014 DIRT is deducted at a rate of 41% on interest earned on all relevant deposits, irrespective of the term of the investment.

Relevant deposits are deposits held by deposit takers in the State, other than certain State Bodies, on behalf of individuals who are resident in the State.

There is no exemption for interest paid on deposit accounts held by unemployed individuals or individuals on low incomes.

Interest is exempted from DIRT in the following circumstances:

Individuals aged 65 or older

An account held by an individual where the individual or his or her spouse or civil partner is aged 65 or older, and his or her total income in a year (including interest earned) is below the annual exemption limit, is exempt from DIRT.

The annual exemption limits for 2015 are €18,000 in the case of a single person and €36,000 in the case of a married couple or civil partnership.

Permanently Incapacitated Individuals

An account held by an individual where that individual or his or her spouse or civil partner is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself and is not liable to pay income tax because of the level of his or her income, is exempt from DIRT.

Medium and Long Term Deposits

Prior to the enactment of the Finance (No.2) Act of 2013 a portion of interest earnings on all medium and long term deposits was exempted from DIRT in accordance with s.261A of the Act. For this purpose medium term deposits are defined as deposits which are held by a deposit taker for a minimum of three years and long term deposits are those held for a minimum of five years. These provisions continue to apply to medium and long term deposit accounts opened prior to 16 October 2013 for a duration of three and five years respectively from that date. In these cases the first €480 of interest earned in any year on medium term accounts, and the first €635 of interest earned in any year on long term accounts, is exempt from DIRT.