Is an Irish-domiciled ETF an "offshore fund"?

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Persius

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Is an Irish-domiciled ETF considered an "offshore fund" or a "domestic fund"?

I know that the answer doesn't affect the amount of tax due or the way it's calculated. But it may affect the reporting requirements. Revenue's TDM 27-04-01 states:

Where a person acquires a material interest in an ‘equivalent’ offshore fund in the
EU/EEA/OECD, that person is a chargeable person for that period. This means that
they must file a Form 11 / CT1 as appropriate and must include details of the
offshore fund in that return.

If an Irish-domiciled EFT is considered a "domestic fund", does that mean either or both:
1) The person who purchases an Irish-domiciled ETF does not necessarily need to use Form 11. They could use Form 12 if other conditions are met (e.g. income under €5,000 etc.)
2) The who purchases an Irish-domiciled ETF does not need to declare the purchase of the ETF in Form 11 (assuming that they have to use Form 11 for other reasons). They just need to declare the (deemed) disposal in Form 11 as it is due.

It would make my life a lot simpler if I didn't have to declare each monthly purchase of a number of ETF shares in Form 11.
 
An Irish-domiciled ETF is considered an equivalent offshore fund.

Regardless of that there's nowhere to report ETF income on Form 12 that will correctly apply 41% tax.
 
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In the case of an Irish-domiciled ETF, it's both dividend income and growth (taxed as income).

Distributing funds will pay out the dividends as income, accumulating funds will roll-up the dividends inside the fund. Income and gains must both be reported in Form 11.
 
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41% is the special rate of income tax for equivalent offshore funds. It is equivalent to the 41% exit tax deducted on domestic funds by life insurance companies.

TDM 27-04-01

4.1.4. Tax arising [s.747D & s.747E]

The income tax treatment of payments received from [s.747D(a)], or amounts arising on the disposal of an interest in [s.747E(1)(b)] are set out below.

Any income from an offshore fund is taxable at 41%, unless that offshore fund is a Personal Portfolio Investment Undertaking (refer to 3. above) in which case tax at 60% applies. This income is taxable under Case III³.

The gain on a disposal of a material interest is taxed at 41% (or 60% if it’s a Personal Portfolio Investment Undertaking) under Case IV. As both the income and gain are determined in accordance with Chapter 4 of Part 27, USC and PRSI do not apply [s.531AM(1)(b)(iii)(VII)].
 
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fistophobia said:
Listen, who in reality is making monthly returns to R. if they are buying UCITS funds.
Click to expand...
I don't mean make a monthly return. I mean that you have to enter 12 times that you purchased X number of shares on Y date into Form 11 if you have a monthly savings plan
 
Corola said:
An Irish-domiciled ETF is considered an equivalent offshore fund.

Regardless of that there's nowhere to report ETF income on Form 12 that will correctly apply 41% tax.
Click to expand...
Thanks.
I guess I'll have to stick with Form 11 and accept that I will need to enter 12 separate purchases of ETFs into the form as I am using a monthly savings plan with Trade Republic.
 
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Just report the total of your purchases for the year - Revenue don't care that you purchased them in 12 monthly amounts

In 8 years time you will need to submit a deemed disposal, unless you sell them in the meantime, and the simplest way to do this is to use FIFO and calculate the gain on each monthly purchase separately

A simple spreadsheet will enable you to keep track of the purchases and, hopefully, the taxable gains
 
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