Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Finance further to Parliamentary Question No. 79 of 21 June 2018, the estimated annual cost of removing the income tax, including USC and PRSI, on dividend income and replacing it with a flat rate of taxation on dividend income of 20%, 30% and 40%, respectively; and if he will make a statement on the matter. [28758/19]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is assumed that the Deputy is referring to dividend income from Irish resident companies.

I am advised by Revenue that based on tax returns and the yield from Dividend Withholding Tax for 2016, the replacement of all Income Tax, USC and PRSI on dividend income with a flat rate of taxation of 20% is tentatively estimated to be a loss in the region of €95 million.

On the same basis, the estimated tax yield from imposing a flat rate of tax of 30% in place of Income Tax, USC and PRSI on dividend income could be in the region of €95 million. The estimated tax yield from imposing a flat rate of tax of 40% could be in the region of €280 million.

These estimates are based on no behavioural change.