Key Post The Tax Treatment of ETFs for Irish residents

Discussion in 'Exchange Traded Funds (ETFs)' started by Marc, Apr 16, 2015.

  1. daheff

    daheff Frequent Poster

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    deleted
     
  2. jeanneau39

    jeanneau39 Registered User

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    Hi,

    I'm finally filing the form 11 in the ROS (time until the 14 nov. this year).

    Thanks to all the suggestions received in this forum I can summarize that:

    1)Gains on Irish-EU ETF are taxed at 41% as investment undertaking line 409 (a) (TCA 739 E 1 b ii). If the investor is not domiciled in Ireland, this should not follow under remittance basis.

    There are some other points of view that the ETF (Irish or EU) should be allocated under the line 322 (c) (TCA 747 E 1 b ii) as offshore funds (regulated).

    This point is still to clarify..

    2)Non EU funds are (like US or other OECD) follow under the CGT

    3)Non Eu funds in particular location (singapore - jersey...) follow under the TCA 745 and apply the income tax + PRSI and USC. If the investor is not domiciled in Ireland this should be under remittance basis.

    4)ETC follow under the CGT.

    Can somebody confirm-share the knowledge on these points?

    thank you in advance to everybody for the help provided, this form is a very good tool to understand better this difficult task!

    regards,
     
  3. balckstream

    balckstream New Member

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    1
    Hi jeanneau,

    I just wanted to ask if you could clarify your point 1)?

    "1)Gains on Irish-EU ETF are taxed at 41% as investment undertaking line 409 (a) (TCA 739 E 1 b ii). If the investor is not domiciled in Ireland, this should not follow under remittance basis.

    There are some other points of view that the ETF (Irish or EU) should be allocated under the line 322 (c) (TCA 747 E 1 b ii) as offshore funds (regulated).

    This point is still to clarify.."

    Regards,
     
  4. PMU

    PMU Frequent Poster

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    880
    The 'Revenue Guidance Note on Exchange Traded Funds (ETFs)' as amended in June 2015, clearly states concerning both income and gains on Irish domiciled ETFs that “ Such income and gains do not attract Pay Related Social Insurance (PRSI) or Universal Social Charge (USC) liabilities.”. Is this advice still valid? I've just received a request from Revenue for PRSI and USC on both gains and income for Irish domiciled ETFs.
     
  5. fistophobia

    fistophobia Frequent Poster

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    76
    Find out who their manager is, and report them.
    I hate this sort of incompetence, and it goes unchallenged.
     
  6. spanners

    spanners Registered User

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    41
    Does as anybody know what the position re UK ETFs is likely to be post Brexit. The current guidance suggests that they will be treated as CGT and income but that seems a bit too good to be true?!