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Tax on Australian ETFs

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  • 31-05-2019 12:30pm
    #1
    Linkstr
    Registered Users Posts: 28 ✭


    Hi All,
    as you might already know, irish taxation on EU domiciled ETFs is pretty odd - and is summarized below (based on an irish times article https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331) :

    1. Irish domiciled ETFs:
    Tax on gains: Exit tax at 41 per cent
    Tax on income: Exit tax at 41 per cent

    2. EU (other than Ireland) domiciled ETFs
    Tax on gains: Exit tax at 41 per cent
    Tax on income: Exit tax at 41 per cent

    3: US, EEA and other OECD domiciles
    Tax on gains: Capital gains tax at 33 per cent
    Tax on income: Income tax + PRSI + USC
    “Offshore” ETFs
    Tax on gains: Income tax + PRSI + USC
    Tax on income: Income tax + PRSI + USC

    Unfortunately we cannot buy American ETFs anymore (as it has been discussed in other posts) - which means I can't invest in VXUS & VTI anymore...
    I have recently found out that Ishares has converted some of their ETFs to Australia, including IVV (S&P 500 index - ISIN:AU000000IVV8 ).
    I was wondering if the CGT on those ETFs would be 33% or 41% ?

    Thanks !


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    #2
    hada
    Registered Users Posts: 699 ✭✭✭hada


    Linkstr wrote: »
    Hi All,
    as you might already know, irish taxation on EU domiciled ETFs is pretty odd - and is summarized below (based on an irish times article https://www.irishtimes.com/business/personal-finance/don-t-invest-in-an-etf-until-you-understand-the-tax-1.3421331) :

    1. Irish domiciled ETFs:
    Tax on gains: Exit tax at 41 per cent
    Tax on income: Exit tax at 41 per cent

    2. EU (other than Ireland) domiciled ETFs
    Tax on gains: Exit tax at 41 per cent
    Tax on income: Exit tax at 41 per cent

    3: US, EEA and other OECD domiciles
    Tax on gains: Capital gains tax at 33 per cent
    Tax on income: Income tax + PRSI + USC
    “Offshore” ETFs
    Tax on gains: Income tax + PRSI + USC
    Tax on income: Income tax + PRSI + USC

    Unfortunately we cannot buy American ETFs anymore (as it has been discussed in other posts) - which means I can't invest in VXUS & VTI anymore...
    I have recently found out that Ishares has converted some of their ETFs to Australia, including IVV (S&P 500 index - ISIN:AU000000IVV8 ).
    I was wondering if the CGT on those ETFs would be 33% or 41% ?

    Thanks !

    As far as I know, it would fall into the OECD category.

    Vanguard also have a number of Aus domiciled funds. These (along with the iShares funds) are listed on the ASX. So my query would be is whether Irish domiciled investors can acquire these ASX listed (and domiciled) funds, or are we excluded from doing so on the same basis as the US ETFs?


  • Options
    #3
    Linkstr
    Registered Users Posts: 28 ✭Linkstr


    hada wrote: »
    As far as I know, it would fall into the OECD category.

    Vanguard also have a number of Aus domiciled funds. These (along with the iShares funds) are listed on the ASX. So my query would be is whether Irish domiciled investors can acquire these ASX listed (and domiciled) funds, or are we excluded from doing so on the same basis as the US ETFs?
    I will try next month (I need some cash first).
    I am looking for a cheap broker offering those Australian ETFs (Degiro doesn't cover the Australian market). I found IG but at around 8€/transaction, it's not cheap (compared to Degiro) :(


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