Tax withholding on interest income through IB Ireland

M

Maverick2608

Has anyone succeeded in reclaiming the 20% withholding tax on interest income from the Irish IRS?

I have filled out the form so going forward there will be no tax withholding. However, I struggle to reclaim the tax withheld for 2022.

According to the IRS in my jurisdiction (within the EU), my jurisdiction has the right to tax the interest income according to the double tax treaty. So I will pay the full tax in my jurisdiction and the IRS suggested I contact the Irish IRS for a reclaim.

However, the Irish IRS tell me they cannot pay out the withheld tax because I do not have an Irish PPS (tax number I assume), and refer me back to Interactive Brokers.

Interactive Brokers say they have not resolved the issue.
 
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To the extent clients pay withholding tax in 2022, they may be entitled to reclaim some or all of the tax paid from the Irish Revenue Commissioners after the end of the current year. This again depends on the DTA between clients’ country of residence and Ireland. We will provide more detail on the reclaim process in due course.
 
qwerty11 said:
To the extent clients pay withholding tax in 2022, they may be entitled to reclaim some or all of the tax paid from the Irish Revenue Commissioners after the end of the current year. This again depends on the DTA between clients’ country of residence and Ireland. We will provide more detail on the reclaim process in due course.
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Yes, however IB never provided more detail on the reclaim process.

Has anyone Has anyone succeeded in reclaiming the 20% withholding tax on interest income from the Irish IRS?

I have received details from the Irish IRS on how to reclaim, but those forms were for dividend income, and I need forms for interest income.
 
qwerty11 said:
How do you know? Is this just a feeling or did you actually look into it? Because your (bold) statement is not true!
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I know because I have waited for more information on the reclaim process, since they wrote they would provide more information, and I have written to IB for more information and was told they were not ready. What information have you received?
 
I didn't receive anything but (coincidentally) looked in AM a few weeks ago. I saw they did a great job by putting the correct form in place there, just as they promised before (see above). Note that it only becomes relevant as of 2024 (because the affected FYs are 2022 and 2023) so they are, according to me, in no way too late providing this update.

I hope this is helpful to you and, if so, please reconsider your statement that IB never provided more detail on the reclaim process!
 
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qwerty11 said:
I didn't receive anything but (coincidentally) looked in AM a few weeks ago. I saw they did a great job by putting the correct form in place there, just as they promised before (see above). Note that it only becomes relevant as of 2024 (because the affected FYs are 2022 and 2023) so they are, according to me, in no way too late providing this update.

I hope this is helpful to you and, if so, please reconsider your statement that IB never provided more detail on the reclaim process!
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Thank you so much! I did not see it. It must be new. For me it only applies to 2022, since there is no withholding beginning in 2023, when I provided the appropriate form to avoid the withholding.

I found this on the Irish Revenue Service web page, which is the next steps to reclaim the tax:

"Exemption or repayment of Irish tax on interest agreements
You may be tax resident in a country that has a Double Taxation Agreement with Ireland. If so, you may be able to claim an exemption or repayment of Irish tax on interest payments.

You should complete a Form IC7 and attach the Form R185 you received from the person who withheld the tax.

Further guidance on completing a Form IC7, and the additional information you will need to submit with the claim, is available on the form."
https://www.revenue.ie/en/self-assessment-and-self-employment/retainable-charge/index.aspx#:~:text=You must complete a Form,you have deducted tax from.
 
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