Dividends from credit union share accounts are treated for DIRT as if they were deposit interest.

• A. Tax free, as credit unions are considered charities.
• B. Subject to DIRT as if they were deposit interest.
• C. Subject to income tax at 20%.
• D. Exempt from DIRT if the share balance is less than €1,000 throughout 2020.

Answer: (B)

DIRT is the tax charged on interest earned from deposits, collected at source. Credit union dividends on share accounts are treated the same as deposit interest for DIRT purposes, so they are subject to DIRT at the applicable rate. They aren’t tax-free, nor is there an exemption based on a balance threshold. This consistent treatment keeps savings income from different institutions on the same footing for DIRT.