Id say it's to keep the pressure on the minister, he has shown no incentive to do anything on this , all the running on making changes and the public consultation was carried out by his predecessor. His natural inclination is to just sit on his hands and talk gobbledygook on the subject.
41% Exit Tax - Will we see Budget 2026 changes
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I have a poll running on linked in
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The taxation of personal investments in Ireland is beyond comprehension for many people. This has directly contributed to the amount of cash slowing rotting away in bank deposits which, on average… | Marc Westlake CFP, TEP, EFP, APFS
The taxation of personal investments in Ireland is beyond comprehension for many people. This has directly contributed to the amount of cash slowing rotting away in bank deposits which, on average, earn less than inflation. As a result the county is worse off financially. Taxes, levies and...
www.linkedin.com
Interesting remark from one individual who commented on it.
"My guess is that they remove the 8 year rule, and then a very slow and gradual reduction of the rate from 41% to 36% and then retain the traditional CGT+3% to account for gross dividends. This was alluded to by Dept officials over the summer at presentations in Dublin."
The exit tax rate has never been linked to CGT. When it was introduced it was 3% above standard rate of income tax but since Apr 2009 it has not been linked to income tax or CGT.
There is no requirement that it must be +3% for gross roll-up now.
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Minister is not able to answer a simple question, he spends most of the reply regurgitating the question asked then the rest regurgitating the same answer he gave last week and last year. You would get a better answer out of AI. He seems to have a lack of interest or awareness of the job now,
Although he has made one inadvertent revelation, they are again distinguishing between the domicile of the ETFs and only Irish domiciled ETFs are taxed under deemed disposal regime. US domiciled ETFs seem to be taxed under CGT. The whole revenue removing clarification in 2021 seems to have made no difference and looks like it was designed to muddy the waters
Although he has made one inadvertent revelation, they are again distinguishing between the domicile of the ETFs and only Irish domiciled ETFs are taxed under deemed disposal regime. US domiciled ETFs seem to be taxed under CGT. The whole revenue removing clarification in 2021 seems to have made no difference and looks like it was designed to muddy the waters
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It does seem like a case of good cop, bad cop between Jack and Pascal. This close to the Budget he could announce alignment of exit tax with the higher rate of income tax and spin it as a win.
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yellowmoose
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I had no idea who Peter Burke is, the article doesn't clarify, and I had to look him up.
The noes have it, 51% think nothing will happen in this Budget.
The answers are written by the civil service for the politicians, which is why the response is nearly always the same. Most politicians, including our MoF, seem disinterested in the topic, and to be frank, that's probably because most of the general population is disinterested in the topic.
I don't think dropping the reference to Budget 2026 is an accident (@TheJackal well spotted). In a situation whereby Departments are over-spending their budgets, the threat of tariffs loom large, IFAC, the CB, and others are at pointing out how precarious our tax base is, any change to the status-quo seems unlikely.
yellowmoose
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is it certain that reducing the ETF tax rate will reduce the tax take? If some of the savings currently sitting in low or non-yielding bank accounts moves to trading ETFs might the tax take from that currently unproductive amount of savings not potentially increase?
Certain, no, likely, yes.
You've got the certainty that changing the tax regime will reduce the amount of tax collected on ETFs, with the potential that some people move money from cash savings (again already taxed via DIRT), start investing in ETFs and ultimately sell them (or earn dividends from them, if non accumulating) to generate more tax. In the long-term with enough education, maybe, but I'd argue you'd need to create a much better incentive to really move the dial in this respect.
If you did want to change behaviour, a more effective way is to create an ISA-style account where the tax treatment of what you're investing in is irrelevant. EU pressure (resulting from the Draghi report) via the SIU could do that ultimately, but I fear the same conservative mentality by those who design such schemes will prevail, and our version will be the 'poor relation' (in all senses of the term).
And don't forget that DIRT provides the government with a regular income as it's collected whenever interest is paid. Exit tax is only paid on a taxable event.
From the Government's perspective, exit tax does provide a regular income as each annual tranche of investments from 8 years ago becomes liable for deemed disposal.
Dr Strangelove
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I have no idea whether there will be any changes announced in the Budget.
I do know that sensitive tax policy changes like this are extremely closely guarded and if there are any plans no more than dozen people know about them at present.
Everyone both in public and online is doing nothing other than guessing.
I do know that sensitive tax policy changes like this are extremely closely guarded and if there are any plans no more than dozen people know about them at present.
Everyone both in public and online is doing nothing other than guessing.
fistophobia
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How is Revenue measuring the tax take ?
UCITS unit funds and ETFS are lumped together for exit tax purposes.
UCITS unit funds and ETFS are lumped together for exit tax purposes.
Yes, I was thinking about the removal of deemed disposal
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