Can anyone clarify the full tax implications of Exchange traded funds (domestic or foreign registered) that are bought by Irish residents?
1: the Iseq 20, as I understand it, is a Ucits fund, and subject to income tax on dividends at the standard rate 20% only,and a capital gains tax on sale of 20% plus 3 per cent (23%). It is a gross roll up fund.
But is it also subject to the new provision of the 2006 Finance Act, whereby after holding the shares for eight years, there is a deemed disposal of the holding which is subject to the 23 per cent tax on the nominal gain over that eight year period ?
And what of the tax treatment of foreign – say US registered – ETFs, such as the Nasdaq (QQQQ): are these regarded by Revenue as just like any other share, where dividends are taxable at the marginal rate of tax, and where the CGT rate is 20%?
1: the Iseq 20, as I understand it, is a Ucits fund, and subject to income tax on dividends at the standard rate 20% only,and a capital gains tax on sale of 20% plus 3 per cent (23%). It is a gross roll up fund.
But is it also subject to the new provision of the 2006 Finance Act, whereby after holding the shares for eight years, there is a deemed disposal of the holding which is subject to the 23 per cent tax on the nominal gain over that eight year period ?
And what of the tax treatment of foreign – say US registered – ETFs, such as the Nasdaq (QQQQ): are these regarded by Revenue as just like any other share, where dividends are taxable at the marginal rate of tax, and where the CGT rate is 20%?