Tax on Dividends From Shares in Ireland

Taxation of Share Dividends

If you own shares and your shareholding gets paid a dividend, Revenue is going to want some of that in the form of Income Tax.
Additionally, PRSI and USC may also be due on the gross dividend
These will be need to be declared and collected through the Self Assessment system (if applicable).


Taxation of Dividends paid by Irish companies

Irish companies will always deduct 20% tax at source from the gross dividend. If you are liable for income tax at the higher rate you will pay tax on the gross dividend at the higher rate and be given a credit for the 20% tax already deducted.


Taxation of Dividends on UK shares

You will be liable for Irish income tax on the net dividend received by you. No credit is allowed for any UK tax already deducted from the dividend payment. You must convert the net payment received to Euros and declare it on your Irish tax return form.


Taxation of Dividends on US Shares

There is a 30% withholding tax on US dividends for non-US residents. However , if you complete a W8-Ben form for your stockbroker, a lower 15% tax rate will apply.
You will need to declare dividend income on your Irish tax return. You will be liable for either 5% or 25% of the dividend in additional tax. (Depending on whether you pay income tax at 20% or 40%)


If you are looking for the best place to buy shares online in Ireland you should read our Comparison of Irish Online Brokerages

Taxation of Profits From Shares in Ireland