Bernard Durkan (Kildare North, Fine Gael)
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76. To ask the Minister for Finance the current level of personal savings after which deposit interest retention tax is chargeable; and if he will make a statement on the matter. [40895/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that all deposit takers (e.g. banks, building societies, credit unions, Post Office Savings Bank, etc.) are obliged to deduct Deposit Interest Retention Tax (DIRT) from all payments of interest made to an account, irrespective of the balance of the account, unless the account qualifies as an exempt account. There is no de minimisamount below which DIRT is not operated. The information that deposit takers are required to return to Revenue in relation to DIRT relates only to aggregate information. There is no requirement to distinguish in the returns between DIRT from personal deposits and other sources. Revenue is therefore not in a position to estimate the personal savings element of the DIRT returns.

As and from the 1 January 2014, DIRT is deducted at a rate of 41% on interest earned. There are a limited number of exceptions to this rule. Interest is exempted from DIRT mainly 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 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.

Companies, Pension Funds and Charities

DIRT is not deducted from interest paid on deposits held by companies, approved pension funds or exempt charities.

Non-Resident Account Holders

Deposit accounts where all of the interest on the deposit is beneficially owned by a person or persons resident outside the State are exempt from the application of DIRT. However a joint account owned by an Irish resident and a foreign resident would be subject to the retention tax system.