Guidelines to report tax on ETFs and Bonds bought on Trade Republic

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franc82

Registered User
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I bought a few ETFs and Bonds on Trade Republic and I need some guidance on how to report it to Revenue.
The ETFs are all Irish based and are accumulating. These were bought last month. Some bonds that I bought are paying dividends yearly and twice a year. Also, Trade Republic pays 4% interest rate monthly on any amount that isn't invested.

From what I read, any gain made from these investments are taxed at 41%. On the Revenue website, there doesn't seem to be some guidance about filling tax returns or let alone reporting it.
 
Interest paid by bonds is reported as investment income. It will be taxed at your marginal rate of tax.

As your ETFs are accumulating, the only tax will be on the gains, if any, made when you sell/dispose of them with a deemed disposal every 8 years, if you hold onto them for that length of time
 
Only form 11 seems to have the field to capture the details of Offshore Funds - and apply the correct tax rate of 41% to gains.
It is incredibly confusing - and I don't understand why revenue can't or won't publish a simple guide aimed at regular individual investors, written with an acknowledgement of the modern practice of regularly buying small amounts.

I submitted a question to revenue as to whether I could declare the info somewhere under myaccount - or did I need to register for ROS and file a form 11. The answer I got, after 4 weeks, was that I could report it on a CG1 form.
Which is incorrect - you can't.
 
As I understand it, you need to use Form 11 to report on ETFs. You have to report the total purchase price in the year of purchase. And you report the gain on year of disposal (or on year 8 in case of deemed disposal). If your ETFs were distributing, then you'd report the "dividend" income in the same place as the disposal income (i.e. all taxed at 41%).

I don't think you need to report purchase of bonds anywhere. As JPD said, income on the bonds would be taxed at marginal rate.
And since you have to use Form 11 for the ETFs, you will also report the EU deposit interest here. Form11 calculation means that you will be charged DIRT and PRSI on the interest.
 
I hope it is OK to tack on a slightly different but related question to this thread (my apologies if not).
Does anyone know if you still have to report purchases of ETFs if they were bought through a PRSA?
 
Am I the only one who finds this difficult to follow. DIRT is clear and for shares it's CGT on disposal? I didn't know EFT's was only on disposal and what is the different treatment of Irish and non Irish and how do I know? Seems like another issue using Trade Republic and the like is is when you buy and sell it gets complicated?
 
The husband has shares, in his name only, which he sells. Can he claim his wife’s exemption as well as his own in calculating CGT. They are jointly assessed for tax.
 
No the cgt exemption is personal and can't be transferred to the spouse. It's for this reason I have trading accounts one in my wife's name and other in my names . So I can split the shards bought and sold . To use up each of limits each year
 
All I'm following up on this old thread. A few years ago (roughly 3 years ago) I seeked professional advice and (among other things) the tax consultant confirmed that you need to include the purchase of a foreign fund on Form 11, but not the purchase of an Irish ETF, have things changed in the meantime ?
 
That's correct according to this guide from Standard Life.

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

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...
www.askaboutmoney.com
 
That Standard Life guide is fantastic - clear and to the point. I had decided not to return details on purchases of Irish ETFs, but always had some doubts.
How much confusion and angst would it save everyone for revenue to publish something equally clear?

Also nice to see them clarify that loss/gain offsetting can be done within the same fund.
 
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The idea that Johnny student who invests their 10 quid left over from their part time job in a Luxembourg based ETF through Revolut now has to fill out a Form 11 to tell Revenue is laughable. We really need to move into the 21st century with this stuff.
 
What do you propose? How should people report their returns to the Revenue?
 
For €10 I would add it to other foreign income in my Form 12. It's not pragmatic to register and file a Form 11 for inconsequential amounts.
 
I propose not having to report the purchase of investments like in most developed countries. Failing that I would propose it being done via Revenue's MyAccount portal rather than having to file a Form 11. If you're going to make people lodge tax returns, you have to make it simple and the Form 11 is far from that.
 
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