What is Deposit Interest Retention Tax (DIRT) applied to?

Deposit Interest Retention Tax (DIRT) is a tax specifically levied on the interest earned from savings accounts and other deposit accounts held in Irish banks and other financial institutions. The purpose of DIRT is to collect tax on the income generated from these interest-bearing deposits before it is paid out to the account holder. This system ensures that the tax is withheld automatically, simplifying the process for individuals who might otherwise need to manage their tax obligations concerning interest income.

The other options are not subject to DIRT as they pertain to different forms of income or financial transactions. Income from employment is taxed under the income tax system, profits from selling assets may incur capital gains tax, and gifts from relatives typically do not have income tax implications but may be subject to gift tax under certain thresholds.