Tax on dividends received as shares

knockshe

Registered User
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If I receive dividends as shares in the company from which the dividend is coming, what is my tax liability? Do I pay income tax at my marginal rate on the dividend or am I not liable for tax until I dispose of the shares received as dividend and, if so, at what rate?
 
The tax treatment is exactly the same as if you had received a cash dividend and used the proceeds to buy more shares.

Say you are entitled to a gross dividend of €1,000 with €200 DWT, paying you €800 net.

You declare this on your tax form and pay tax at your marginal rate on the €1,000 but you get €200 tax credit against your liability.

You need to hold onto the dividend voucher for income tax and CGT purposes for when you sell the shares.
 
on a related matter, can the cost of commission,transfer stamp and compliance and settlement costs of buying shares be offset against gains when you sell them.. and can all costs when selling be offset also?
 
Capital gain vs capital loss tax treatment

If I make a gain on a share sale but have more than enough capital losses from previous years to offset that gain am I still obliged to make a return of this to the Revenue, detailing the gain and the loss I am using to offset it? For how many years can I carry over a loss for the purposes of offsetting it versus a gain?
 
You can carry the loss forward indefinitely.

Not sure if you have an obligation to make a return, but why not just make it and keep everything clear?

Brendan
 
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