Irish dividend withholding tax double taxation relief

[sapstar]

Hi, I have a number of stocks assigned to me by my previous employer who is listed in NYSE, but incorporated in Ireland. Every quarter when I get a dividend on these stocks, a 25% Irish dividend withholding tax is charged. When calculating taxes on dividends, can I deduct the 25% amount I already paid to Ireland?

Let's I received £4000 in dividends and already paid £1000 in dividends to Ireland.
When I file my UK tax return would I calculate as below?
Deduct Tax free allowance: £4000 - £500 = £3500
Tax Payable: £3500 X 33.75% = £1,181.25
Deduct already paid Irish tax: £1818.25 - £1000 = £818.25

Also HMRC website states that Ireland should charge 15% in tax, but I am always charged 25%. I did purchase the same shares from another broker and they also charge 25% Irish dividend withholding tax on dividends, so not sure how the 15% actually works.
https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt9882

[someone]

https://intax.ie/understanding-dividend-withholding-tax-dwt-for-irish-company-shareholders/

I don't know for certain but I suspect you should reclaim 10% from revenue.ie and deduct the remaining 15%

See the anna in germany example.

https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt9882

[someone]

https://www.revenue.ie/en/companies-and-charities/dividend-withholding-tax/index.aspx

Forgot this link

[sapstar]

Thanks very much for the response. I called the Irish revenue today and surprised my call was answered in under a minute unlike HMRC .
They said I can claim back the full 25% or just 10% to align with double taxation law and that's up to me to decide what will be beneficial for me.

The process to claim back is a bit tricky. They said they will need the Dividend Voucher from the broker which shows both the broker receiving the dividend amount and then transferring it to me. They also said sometimes the brokers may not provide this information to clients due to data security reasons...

Worst case I will be paying 10% additional tax to Ireland in case I can't claim it back.

[yumak]

Hi, I'm in a similar situation and have company shares for which the dividends I receive are subject to a 25% Irish withholding tax. I want to reclaim the Dividend Withholding Tax (DWT) and noticed your post where you mentioned that you called the Irish Revenue. They advised you that you can either reclaim the full 25% or just 10% to align with double taxation laws.

I would like to reclaim the full 25% since I did not receive any income last year, and I don't believe I can use the 10% against the tax relief. However, I couldn't find any option to claim the full 25% back, despite checking all the documents published by the Irish Tax Revenue.

First of all, did you manage to get the full 25% back? If so, which forms did you complete? I believe it starts with the V2A form and then the claim form. Any advice would be really appreciated. Thanks in advance,

[sapstar]

Hi, I haven't claimed mine. I checked with my broker and they said, they can't provide me a dividend voucher. Spoke to Irish revenue again and they confirmed they need the dividend voucher. So I am stuck.

I will have to just claim the 15% relief from HMRC and overpay the 10%.

[yumak]

Thanks for your reply. Sorry to hear that you cannot get a dividend voucher. I believe I can download the dividend statement from my broker, which should include all the details needed for the Irish Revenue, although I need to confirm that with them on Monday.

Since I cannot claim the 15% tax relief from HMRC due to not earning income last year, I am keen to secure the full 25% refund. I've checked all available online resources, and your post was the only one that gave me hope regarding claiming the full 25% from the Irish Revenue. Fingers crossed! I sent the V2A form to HMRC. I plan to send that form along with my dividend voucher to the Irish Revenue, so I hope all will be accepted. thanks

[sapstar]

I got a dividend statement too from the broker. This only had the dividend that's paid to me. Didn't show anything about the dividend being paid to the broker from the company. Irish revenue said they need to see the whole transaction.

Apparently the broker receives 1 dividend voucher for the stock and they split the dividends to individual stock holders.