Paul Murphy (Dublin South West, Solidarity)
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39. To ask the Minister for Finance if he plans to reform the DIRT tax from a flat tax to a progressive model; and if he will make a statement on the matter. [9888/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Deposit Interest Retention Tax, or DIRT as it is more commonly known, is a withholding tax that is deducted by financial institutions on the deposit interest earned on the various Savings Products that are offered by them. Since 1 January 2020, the DIRT rate is 33%. DIRT is deducted at source by the financial institution from deposit interest paid or credited on the deposits of Irish residents. DIRT is a final liability tax. This means that an individual has no further tax liability in respect of the deposit interest earned. Individuals may have a liability to Pay Related Social Insurance (PRSI). In general, Pay As You Earn (PAYE) employees are not liable to pay PRSI on deposit interest but self-employed individuals may, in certain circumstances, be liable to pay PRSI on their deposit interest. Individuals aged under 16 and over 70 are also not liable to pay PRSI. In addition, deposit interest is specifically excluded from the Universal Social Charge (USC). There are also various exemptions from the obligation to deduct DIRT on deposit interest paid or credited by financial institutions.Given the range of exemptions available , I believe the DIRT rate is sufficiently fair and proportionate. I therefore have no immediate plans to introduce changes to the DIRT structure.