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Tax on ETFs: PAYE online?

  • 12-06-2020 4:52pm
    #1
    Amouar
    Registered Users, Registered Users 2 Posts: 1,234 ✭✭✭


    Hi,

    I'm interested in starting investing in Irish domiciled ETFs (iShares), and I found out online that the tax on dividends and CG is 41%.

    Can these be declared online using PAYE online or it has to go through Form 11? If this can be done online, can you please tell me under which income category it would fit?

    Thanks


Comments

  • #2
    iAcesHigh
    Registered Users, Registered Users 2 Posts: 447 ✭✭iAcesHigh


    Amouar wrote: »
    Hi,

    I'm interested in starting investing in Irish domiciled ETFs (iShares), and I found out online that the tax on dividends and CG is 41%.

    Can these be declared online using PAYE online or it has to go through Form 11? If this can be done online, can you please tell me under which income category it would fit?

    Thanks

    Unfortunately, investing in ETFs comes with quite a paperwork in Ireland. Check the following link: https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331

    or my previous thread on the topic: https://www.boards.ie/vbulletin/showthread.php?t=2058071170


  • #3
    sk8board
    Registered Users, Registered Users 2 Posts: 3,542 ✭✭✭sk8board


    ETFs are fine for holding longer term, with ‘deemed disposal’ every 8 years.
    Due to the popularity of global diversified ETFs with individual savers, it’s likely the gov will do something to clear that tax complexity up, given how many people won’t file correctly in years to come.
    As ETFs are relatively new to Irish investors, there won’t have been many people who have hit the 8-year deemed disposal situation yet.

    Tax is 41% v CGT of 33%, and you also don’t get to use the annual CGT exemption of €1,270, so it’s worth having some investments that attract CGT (individual company shares e.g).
    I have 90% ETFs and 10% individual stocks - the stocks are held long term just to use the exemption (and I usually just sell and re-buy a stock immediately at some point in the tax year once there is a €1,270 gain)


  • #4
    Amouar
    Registered Users, Registered Users 2 Posts: 1,234 ✭✭✭Amouar


    sk8board wrote: »
    ETFs are fine for holding longer term, with ‘deemed disposal’ every 8 years.
    Due to the popularity of global diversified ETFs with individual savers, it’s likely the gov will do something to clear that tax complexity up, given how many people won’t file correctly in years to come.
    As ETFs are relatively new to Irish investors, there won’t have been many people who have hit the 8-year deemed disposal situation yet.

    Tax is 41% v CGT of 33%, and you also don’t get to use the annual CGT exemption of €1,270, so it’s worth having some investments that attract CGT (individual company shares e.g).
    I have 90% ETFs and 10% individual stocks - the stocks are held long term just to use the exemption (and I usually just sell and re-buy a stock immediately at some point in the tax year once there is a €1,270 gain)

    Do you report ETFs dividends online or do you use form 11?


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