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DWT on ishares (ETF's)

  • 25-06-2014 3:20pm
    #1
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭


    Looking for a bit of clarification on the taxation of dividends for ishares purchased through Davy's.

    As per the investment report, the dividends are included under the heading Irish investments. However, there is no DWT deducted. Can anyone provide an explanation as to why they are exempt from DWT?

    Am I correct in assuming that they should be included on the Form 11 under the heading "Gross amount of Dividends from Irish Resident companies (from which Dividend Withholding Tax was not deducted) "?

    Thanks,
    Hcksaw


Comments

  • #2
    Marcusm
    Registered Users, Registered Users 2 Posts: 10,628 ✭✭✭✭Marcusm


    Are you. Sure that there are distributions? Many are roll up funds and, in certain jurisdictions, there are deemed income amounts. You haven't given enough information and my first port of call would be Davy's as they should be able to provide access to the underlying reports.


  • #3
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭HcksawJimDuggan


    I have obtained a copy of the investment report from Davy's. As per Davy's the shares are Irish resident and Irish domiciled. However, when queried on the tax treatment they said they were not in a position to provide tax advice.

    The shares are included on the report under the heading "Schedule of Dividends from Irish Investments" so I assume they are a distribution. Under this heading the following information is provided:
    - Date
    - Name of Investment
    - Holding
    - Gross Div rate
    - Gross Dividend
    - Irish Tax
    - Net Dividend Paid

    From further research online, I have found one irish website that explains "Dividend payments from an ETF are liable for tax at the 20% rate only. There is no charge to income tax at the higher rate. However, if you are not liable for income tax you must still pay the 20% rate on the ETF dividend".

    http://www.paylesstax.ie/131-Capital-Gains-Tax-Tax-Treatment-of-Other-Share-Investment-Products

    Can anyone confirm if this is the case and if so, where on the form 11 is the dividend income input so that the tax on it is calculated at 20%?


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