If the AMC in the SIA is as high as 1.25%. It’s clear cut. Contribute up to €50k. Remove everything above. That’s a 38% tax rate (assuming average 6% return in your example) with equivalent to annual deemed disposal. God awful not worth considering.
I can't imagine they'll be examining every ETF to check of it's acceptable to them. They'll either allow all UCITS ETFs or allow none at all.
If every country adopted that attitude the world would be starved of capital and investors would have no where to invest. Most of irish stock ( which is withering on the vine as it is) is owned by international investors not irish. We also can't have it both ways since our taxation system gets 30 billion windfall taxes from that very international capital market. We cant be anal about a little bit of irish savings flowing out into that market
We're a small but rich country without a history of industrial giants. We couldn't find enough things to invest in here without driving asset prices through the roof if we deployed even a fraction of our savings into investments. As an open trading economy generally, I'm happy to put my money to work globally. Wish they'd get on with the European capital market, mind you.
Well the scheme is SIA - Saving & Investment Account that targets €120 billion household money in banks. As per the book definition of investment, around 44% of population in Ireland are investing (including contributory pension). Around 20% of these are holding stocks either in their company or from market. Most of the population on the other hand save money for 4-5 years for next big expense. I think majority of €120 billion in banks is made up of these savings.
I believe the industry sources quoted there are almost definitely life companies as opposed to stock broking platforms.
Without a history of a strong indigenous industry or innovation policy/strategy more like. This is the double edged sword of relying solely on foreign direct investment. IFAC and economists like Sinead O'Sullivan have warned and written about this, especially with three companies responsible for the bulk of corporation tax. Whereas look at Finland, Israel where they've consistently put billions per annum into research and development. Again it comes down to politics in this country not delivering just like it hasn't with an investing culture and taxation.
That article had a few more points too I thought were interesting,
I would suspect the providers offering low cost ETFs won't facilitate fund based commission anyway.
Just thinking the term "broker" has the potential to get confusing here. Imagine paying a "broker's for advice on your SimonSaver held with an online "broker".
Offering SIA increases their TAM and so they could offset the revenue costs (if any!) as it will attract net new customers to the their platform and then can upsell them other products etc