Hi Guys,
As the subject asks - How does one calculate Exit tax on an investment ( Ark Life ).
I was looking at an old article in the indo about this:
http://www.independent.ie/business/...e-the-exit-tax-on-my-investment-26432788.html
Interestingly it is very hard to find a HOW TO on this subject ..
Anyway that article says:
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"Suppose €100,000 is invested in a bond in January 2001.
Some time later the gross value of the bond is €150,000 and a gross partial encashment of €20,000 is requested by the customer. No previous withdrawals have been made.
The chargeable amount is calculated by taking the encashment value and subtracting the allowable premiums, which in turn is multiplied by the encashment value divided by the policy value. In the case of the €100,000 bond, this is €20,000 -- €100,000 x €20,000/ €150,000. This works out at €20,000 minus €13,333, which equals €6,667.
The exit tax on this is €1,533. So the €20,000 encashment will be €18,467 net of tax."
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Does this type of calculation still apply? And yes I know - exit tax is now ( unfortunately @ 41% as opposed to 23% back then. Those were the days
As the subject asks - How does one calculate Exit tax on an investment ( Ark Life ).
I was looking at an old article in the indo about this:
http://www.independent.ie/business/...e-the-exit-tax-on-my-investment-26432788.html
Interestingly it is very hard to find a HOW TO on this subject ..
Anyway that article says:
-------------------------------------------------------------------------------------------------
"Suppose €100,000 is invested in a bond in January 2001.
Some time later the gross value of the bond is €150,000 and a gross partial encashment of €20,000 is requested by the customer. No previous withdrawals have been made.
The chargeable amount is calculated by taking the encashment value and subtracting the allowable premiums, which in turn is multiplied by the encashment value divided by the policy value. In the case of the €100,000 bond, this is €20,000 -- €100,000 x €20,000/ €150,000. This works out at €20,000 minus €13,333, which equals €6,667.
The exit tax on this is €1,533. So the €20,000 encashment will be €18,467 net of tax."
-------------------------------------------------------------------------------------------------
Does this type of calculation still apply? And yes I know - exit tax is now ( unfortunately @ 41% as opposed to 23% back then. Those were the days