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Dividends & Dirt Tax
The latest Dividend and Tax information relates to the year ending on the 30th of September 2012.
Tax and Your Credit Union Dividend
Your Naas Credit Union dividend for 2011/12 is 1.5%, and was lodged to your Credit Union account on the 6th of December 2012.
To help you understand the Tax implications on your Dividend we have put together this simple one page summary of the main points. Your savings at Naas Credit Union are liable for tax and there are 3 types of accounts for Tax purposes in Naas Credit Union.
- Regular Share accounts
This is the traditional Credit Union share account. If you have a Regular Share account, you should declare the dividend you receive in your annual tax return and are then liable to D.I.R.T (rate applicable in 2012 is 30%) as part of your annual tax return. - Special Share accounts
With this account, Naas Credit Union will automatically deduct the D.I.R.T. tax at 30% from any dividend you receive on your shares. - Medium and Long Term Share accounts
You have the option to put some of your money into a 3 or 5 year Share account where the dividend below a certain amount is D.I.R.T. free. You can only have one 3 or 5 year account and you are penalised if you withdraw your savings early.
- 3 Year accounts. Money invested in one of these accounts must remain in the account for 3 years. You can earn an annual dividend on that money of up to €480 without having to pay any tax. Any Dividend earned above €480 will be subject to D.I.R.T. •
- 5 Year accounts. Money invested in one of these accounts must remain in the account for 5 years. You can earn an annual dividend on that money of up to €635 without having to pay any tax. Any Dividend earned above €635 will be subject to D.I.R.T.
There are exemptions to D.I.R.T. tax if you are over 65 and your income is below the threshold (Annual income of less than €20,000 for single person and €40,000 for a married couple).
Naas Credit Union also operates a CU Cash account, the CU Cash account is operated by members for their ATM and Credit Union online accounts. Naas Credit Union paid a dividend of 1.5% on this account. For Tax purposes these accounts are treated as per your Regular Share account.
6 reasons to save with Naas Credit Union
- You get a good rate of return on your savings, in 2012 a Dividend rate of 1.5% was paid.
- You can access your money whenever you need to, through the Credit Union office, the ATM or Online.
- Your money is secure with the Credit Union through the Savings Protection Scheme and Government Deposit Guarantee scheme up to €100,000.
- The Credit Union makes use of the savings by lending to other members for productive purposes, Naas Credit Union also invests heavily in the community of Naas.
- There are no transaction costs.
- Members savings’ (up to certain limits) are insured at no direct cost through the Credit Union Life Insurance Scheme.