ETF dividends and income tax

J

Janman07

Registered User
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Following Jill Kerby's atricle in last week's Sunday Times, can anyone answer the following questions?

1. What income tax is payable on the ISEQ 20 ETF dividends?

2. What income tax is payable on other EU based ETF dividends?

3. What income tax is payable on non-EU based ETF dividends?

While the article gave answers as 1. 20% 2. 20% + health levy 3. Higher rate, they were a bit vague. Does anyone know where this information can be found in a format which might be presentable to the revenue with tax return?
 
Thanks for the link but if you will forgive me for doubting the poster of that message how does he know that his information is correct? See the extract from the ISEQ20 documentation below. It does not say anything about the dividends being treated any differently to those of shares. Normally payment of withholding tax does not imply that you have fully satisfied your income tax obligations.

TAXES​
Stamp duty is not charged on the purchase of ETF shares by investors.
Distributions to Irish individual investors from Irish funds are subject to withholding tax, which is currently
at a rate of 20%.
Gains realised on the disposal, transfer, redemption or cancellation of shares in an ETF are subject to tax,
currently at a rate of 23% (the standard rate of capital gains tax plus 3%).
It should be noted that this tax summary is indicative and investors are advised to consult their own tax
advisers about the rules that apply to their own individual circumstances. The information contained
herein is based on current tax legislation and is subject to change without notice.​
DIVIDENDS​
ETFs may pay dividends in the same way as other companies. The dividends paid are typically based on
the value of the dividends paid by the underlying stocks held by the ETF, less the operating expenses of​
the ETF. Investors are notified of the timing of dividend payments.
 
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