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DWT Dividend Tax Exemption for Over 65’s

Written by John O' Connor on July 23, 2009

What is DWT
DWT, or Dividend Witholding Tax, is deducted from dividends paid by Irish companies. If you are in receipt of Irish dividend income, DWT is deducted at 20% – this is taken out of the dividend you have received, which you can confirm in your dividend certificate. This 20% is then used as an offset against your income tax liability.

Over 65’s Exemption
for Over 65’s as of 2009, if you earn less than €20,000 as a single person, or €40,000 as a married couple then you are exemption from Income tax.
This exemption is increased for each dependent person by amounts from €575 per dependent person.

How does it work?
If your total income is below the income tax exemption limit, then you are due a refund of the DWT deducted. Even where your income is in excess of €40,000, you may still be due a partial refund, depending on how your income is split between dividends and your other income.

Refunds of tax on dividends can be substantial, so ensure that your taxes are in order and you have properly accounted for your dividends. If you have further questions on your taxes or require a tax assessment, contact us here.