Tax rates on non Irish Shares and ETFs?

L

laila

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Anyone know what the tax implications are of buying non Irish ETFs? don't want to incur double taxation. Am looking at ishares funds in US, Asia/Pacific, China and various emerging markets etc. or where could I find this info out? Thanks
 
Sap

That link does not refer to Exchange Traded Funds as far as I can see?

I can't find any reference to ETFs on revenue.ie. Can you?

Brendan
 
I couldn't find anytrhing specific to ETFs. But most ETF's are structured as OEIC's and thus fall under the 23% Exit tax regime
 
Thanks JPD

Is there a guide to the OEIC's regime anywhere?

From a practical point of view...

1) Where do I put the dividend received on my tax return?
2) If I sell them at a gain, I pay 23% but if I sell them at a loss, presumably I can't set the loss against other gains subject to CGT?
 
jams said:
Below is my understanding of the capital gains tax treatment of the ISEQ 20 ETF, which is an Irish domiciled/authorised fund.

Capital gains tax at 23% is calculated on each individual disposal and should be accounted for to the Revenue in the tax period in which it arises (on a self assessment basis).

Because shares in the ISEQ 20 ETF are held in a recognised clearing system (Crest) the 8 year deemed disposal rule alluded to does not apply. Capital gains tax is calculated and payable only when there is a disposal of shares.
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That may be true for Ireland but I think the OP's original question was about overseas ETFs. In this case I understand the CGT rate is 23% but payable every 8 years whether the ETF is sold or not. Also the normal €1270 p.a. CGT relief cannot be used.
 
Labguy said:
That may be true for Ireland but I think the OP's original question was about overseas ETFs. In this case I understand the CGT rate is 23% but payable every 8 years whether the ETF is sold or not. Also the normal €1270 p.a. CGT relief cannot be used.
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Why is it different for oversea ETF's?
 
Offshore funds

As another poster correctly identified if an ETF is structured as a collective investment fund (look for OEIC/FCP/SICAV or UCIT III) then it is a fund and not a share and so it is taxed as a collective investment with gross roll up and exit tax every 8 years.

This means you cannot offset a capital gains tax loss against profits made on a regulated ETF as these are different taxes.

The original question related to offshore funds and the issue here largely relates to regulation and jurisdiction.

An offshore fund can be either regulated or un-regulated and in a "good" jurisdiction or a "bad" jurisdiction.

The tax treatment of an offshore fund therefore depends on the combination of these factors.

It is theoretically possible to invest in an unregulated ETF in a good jurisdiction like the USA just as it is possible to invest in an unregulated collective investment in a "bad" jurisdiction such as a Hedge fund in the Cayman Islands.

This can have complicated tax implications.

I would tend to offer the following as advice: "don't invest in anything you can't illustrate with a crayon"

If you don't fully understand the implications of an investment, it would be well worth paying a few hundred Euro to get some specialist advice.

If anyone would like specific advice in this area please send me a private message and I will put you in touch with an ETF specialist.

I've just set up my pension and I can deal in a couple of hundred ETFs on 9 exchanges globally for around 0.15% per trade. Well worth getting specialist advice in my opinion.
 
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