DIRT - Taxation of Credit Union Savings On the 1st of January 2002, new regulations were introduced that changed the system of taxation of credit union share dividends and interest earned on deposit accounts. Members have an option in respect of how the dividend on their shares is taxed but Dirt Tax is automatically deducted from deposit interest. Note: St. Mary’s Parish Credit Union do not presently offer deposit accounts to members.

Types of Share Accounts

The member has two basic share account options, which are:
Option 1: Regular Share Accounts

• Unless specifically requested by the member, accounts with the Credit Union are considered as a Regular Share Account.
• Dividend rate declared at A.G.M. is posted gross to member’s account.
• No disclosure is required by Credit Union.
• The onus is on the member to declare any dividend earned on their account to the Revenue Commissioners.

Option 2: Special Share Accounts

• Member must request in writing that their account be changed to a special share account.
• Download Special Share Application Form (7.7kb) or get one in the Credit Union office.
• Dividend paid to member net of DIRT.
• Return made by Credit Union does not include individual member’s details.

Member can hold either a regular or special share account but not both. Existing members may change their regular share account to a special share account. St. Mary’s Parish Credit Union recommends that members open a Special Share account. If the member's income is so low that they don't pay any income tax and they are either permanently incapacitated or 65 or over, they are entitled to claim back, from the Revenue Commissioners, any DIRT that is deducted from their dividend. For any queries you may have on the taxation of credit union savings please contact the Revenue Commissioners or your tax advisor.