Profit before corporation tax (trading income at 12.5%)
Salary, wages, or other income (excluding dividends)
Dividend Paid
€175,000.00
DWT Withheld (25%)
€79,102.86
Net to Shareholder
€95,897.14
What is DWT?
Dividend Withholding Tax (DWT) is a 25% tax deducted at source by Irish companies when paying dividends. The company withholds the tax and pays it to Revenue on behalf of the shareholder.
How dividends are taxed for individuals
Irish resident individuals are subject to income tax (up to 40%), USC (up to 8%), and PRSI (4%) on dividend income. The DWT already withheld is credited against the total tax liability. The combined marginal rate can be up to 52%.
Close company surcharge
Close companies (those controlled by 5 or fewer participators) may be subject to a 20% surcharge on undistributed investment income or 15% surcharge on undistributed trading income if profits are not distributed.
Revenue Commissioners: DWT is a withholding tax only. Your final liability depends on your marginal rate. Some shareholders (e.g., companies, pension funds) may be exempt from DWT.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms