CGT on sale of US shares

ddmayo

Hi guys, hoping somebody could shed some light on this for me, finding it quite hard to get clear info online..!

I bought shares in a US company a couple of years ago through an online account with an Irish stockbroker and I am now looking to sell those shares. The shares don't pay a dividend and I will have made a profit of roughly E6,000-7,000 when I sell them. At the time of purchase I filled out a W8-BEN form to qualify for the reduced rate of tax on US share profits.

Does anyone know if having the W8-BEN mean you pay 0% tax on the share profits to the US government and just pay capital gains tax to the Irish government?

I've read some conflicting information that you will still pay a 15% withholding tax charge to the US? If so, is this deductible from the amount payed to the Irish government?

If someone who's been through this could give me a clear answer it would be great!!

elgriff

https://www.crowe.com/ These guys will be able to help if you are okay to pay

bobbyy gee

tax bill

https://www.irishtimes.com/business/personal-finance/us-company-shares-have-landed-us-in-hot-water-1.3455684?mode=amp

Geuze

The 15% refers to lower US income tax on dividends.


That is nothing to do with CGT.

kennedmc

Geuze wrote: »

The 15% refers to lower US income tax on dividends.


That is nothing to do with CGT.

I was wondering the same thing but couldn't find a good summary online.

If you are resident in Ireland and sell shares on a US exchange, is it you are liable for standard CGT on all earnings?

Geuze

Once you are tax-resident here, then it doesn't matter where the asset is.

https://revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx


People own shares on all sorts of exchanges.

CGT is charged on capital gains.

You use the word earnings, which means income.

Geuze

If the shares never paid a dividend, then filling out the US W-8BEN form to get a lower 15% withholding tax has no relevance, AFAIK.

As that is a withholding tax on income, not capital gains.