Tax on US Investments and Stocks

Muglins · 14-12-2009 8:20pm #1

I plan to invest and at some stage trade on the US markets using an e broker (I'm not a big fish at all).
I understand that opening an account will require filing a US W-8BEN.
Can anyone point me in a direction as to where I might find information on meeting any irish tax liabilities that might arise in the future.
I have been searching but without much joy.
Thanks.

TaxingTimes · 17-12-2009 9:08am

If you are trading in shares, you sre likely to be deemed as self-employed, and liable to income tax on any profits you make.

You should therefore register for income tax using a TR1, and keep all resords of income and expenses (which will probably be minimal if trading online).

You will have to use the exchange rates as applicable for each transaction to convert to Euro.

Muglins · 18-12-2009 3:58pm

I will contact Revenue and see if I can pay through PAYE as I do for my full time job.
Not easy getting information on this subject so thanks for that.

alibabba · 30-12-2009 2:02pm

Muglins wrote: »

I will contact Revenue and see if I can pay through PAYE as I do for my full time job.
Not easy getting information on this subject so thanks for that.

Im in the same boat so if you get any info on this can you post here if possible. Thanks.

chevy · 30-12-2009 2:16pm

All you have to pay is capital gains tax in ireland. The best way to do this is to registor on ROS for self-employed individuals on the revenue website.

alibabba · 30-12-2009 2:20pm

chevy wrote: »

All you have to pay is capital gains tax in ireland. The best way to do this is to registor on ROS for self-employed individuals on the revenue website.

Im a paye individual ... will i still do this ?

chevy · 30-12-2009 2:25pm

alibabba wrote: »

Im a paye individual ... will i still do this ?

Yes, i am aswell. However if you register you have to submit a return every year even if it is 0.

alibabba · 30-12-2009 2:31pm

chevy wrote: »

Yes, i am aswell. However if you register you have to submit a return every year even if it is 0.

Cripes this is all new to me. I haven't sold any shares yet, waiting for a turn in the dollar.
KNow where I can read more on this ?

chevy · 30-12-2009 2:45pm

http://www.revenue.ie/revsearch/search.jsp

Look at chapter 8 in the guide to capital gains tax.

You can also search through boards for more info.

TaxingTimes · 31-12-2009 5:37pm

If you are trading you are liable to income tax not capital gains tax.

You need to register as self-employed and prepare accounts for each year of trading.

You can't pay tax on self-employed income under PAYE - PAYE is for employees only.

You should get professional advice.

Corrs LIGHT · 05-01-2010 3:16pm

TaxingTimes wrote: »

If you are trading you are liable to income tax not capital gains tax.

Muglins wrote: »

(I'm not a big fish at all).

Highly debatable issue owing to the nature and frquency of the transactions.

From my personal experience, this transaction should be subject to Capital Gains Tax.

Mr. Incognito · 05-01-2010 4:56pm

Okay US Stocks.

It depends. As you are not a big fish as you say I presume you are only going to buy a few shares and then sell them on.

Any dividends you receive will be liable to Income tax, you will pay tax on the gross with an allowance for US tax paid.

If you dispose of the shares you will be liable to Capital Gains tax on the gain. Ireland has a DTA with the US which also allows for a credit in these circumstances.

Refer here

http://www.revenue.ie/en/tax/it/foreign-income-assets.pdf

Tax on US Investments and Stocks

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