Global Daily Tax News, Ireland Clarifies Tax Rules For Deposit Interest Income, (Jun 19, 2025)

The Irish Revenue has released new guidance on the taxation of deposit interest income.

The guidance explains that such interest is typically taxable but the rules that apply depend on whether the deposit interest is Irish- or foreign-sourced deposit interest income and whether deposit interest retention tax (DIRT) has been deducted from the interest income.

The manual sets out guidance on how the source of deposit interest income should be determined as well as the tax rates, tax returns, and reporting obligations that should apply in each case.

The guidance clarifies Irish resident individuals' liability to Irish income tax on their foreign-source deposit interest income, including the tax rates and reporting obligations that apply.