Payment of tax credit

Summary

This section sets out the method to be used by savings managers to claim tax credits. It also confirms the tax exempt status of the SSIA during its life.

Details

Tax credit payment mechanism

(1) The mechanism by which the tax credit is obtained is that the savings manager makes a return to the Revenue Commissioners within 15 days of the end of each month to claim the tax credits in respect of all that month’s subscriptions to SSIAs managed by the manager. The return also contains the aggregate of any tax deducted by the manager. The net amount due to the manager is claimed from and paid over by the Revenue Commissioners. This tax credit is then immediately paid by the manager into each subscriber’s SSIA.

Tax exemption

(2) to (4) The profit accruing from the investment of an individual’s subscriptions and related tax credits in qualifying assets are allowed to grow tax free throughout the life of the SSIA. Where the qualifying asset in question is a deposit account, or shares held in a Special Share Account with a credit union, deposit interest retention tax does not apply to the interest generated or dividends. An individual who commences an SSIA is obliged to note that fact in his/her tax return.

Relevant Date: Finance Act 2021