Receiving dividends from companies will result in more tax being paid earlier

As Minister for Finance Paschal Donohoe flagged in his budget speech, big changes to tax law are on the way

Modernising tax and its application should be beneficial for all concerned. Picture: Feargal Ward

If you invest in Irish companies, then you will be used to receiving dividends after the deduction of dividend withholding tax (DWT). From New Year’s Day that rate will increase to 25 per cent – it was previously 20 per cent – but that’s only the start of the metamorphosis coming.

As part his budget speech, Minister for Finance Paschal Donohoe said that the Revenue Commissioners had identified a “potential gap” between the DWT remitted ...