ETFs taxation in ireland

Firstrade is one platform I’m aware of that allowed you to trade us etfs with normal ctg rules applying

Commsec and IG trading are the best apps

There is no concrete rule regarding them, revenue just removed their previous clarification that they were taxed under CGT, so they just threw the whole thing into doubt again

It looks like the minister mcgrath wants the whole thing simplified as it is resulting in too much money sitting on deposit as People are petrified of getting caught with wrong taxation bracket for simple investments. No other European country has this complicated taxation regime for simple etf investments

I doubt if that is a very big consideration for the Minister. Taxation on EFT's would not be what has led to €150 billion being in bank deposits, along with vast amounts more in the Credit Unions and State Savings.

Those funds will move whenever it suits the people holding them to do so. Probably never in many cases judging by how many accounts go dormant. But if there was a significant surge into EFT products, would this be a good thing?

The only thing which might make a big volume of money move is if the banks removed their guarantee (it is not a government guarantee). They have already tried to stop the inflow by making interest rates zero. The government giving more favourable tax treatment to EFT's is not going to make much difference.

On these forums some people are very critical of those who leave large amounts languishing in deposit accounts. But what would happen if €100 billion arrived into the stock markets in the next year? Would that help the economy?

I read somewhere, they will not change the 41% exit tax, as it's too costly to do, and it exists to protect the life / pensions industry in Ireland.

Unit funds sold through IBA brokers all deduct 41% at source. A lot of unit funds also have an ETF version traded on exchanges. If ETFs were taxed differently, there would be a huge outflow of money to passive funds.

They also don't want people investing on their own, want to keep it all in pensions and unit funds.

Life companies are NOT on the same playing field... thats my point.

I've an AVC so ETF's are treated just like shares in that. Surprised to see how few ETF's there are compared to IT's (which is a fraction of what I can get on Degiro and many seem to be arbitarily unbuyable, for example I can buy SMT but not HGT (its "restricted") for reasons only clear to Davy . Might be Davy having a crap selection though. Can only buy UK and Ireland shares/ETF's/IT's with huge transaction fees in it. Ireland the land where property is the only thing anyone thinks of investing in...

I can buy US domiciled ETFS on Tastyworks. It works fine. The wire fees are not so bad. Not sure about the tax though. It is a mine field but if anyone wants to go down this road, PM me and I can give you a referral code for a bonus.

Yes it's crazy, in other words you can't invest in ETFS in Ireland essentially. The crazy thing is that many of these ETFS domicile in Ireland for the tax advantages. So the government gives the investment funds big tax breaks but crucifies irish investors that want to invest in these funds

Yeah deemed disposal was invented in the recession times when Ireland was skint as a way of getting some tax revenue now rather than wait till the person actually sold it. Totally legal. If you feel strongly against it they're doing a consultation on it currently and you should make a submission.

One way around it is to buy an investment trust that mirrors the ETF, for example S&P500 is available as the JP Morgan American Trust (available on Degiro etc). That's classes as a share so no deemed disposal (and only 33% CGT).

What I do is use a self directed PRSA pension to get invest in Vanguard Global Stock Index Fund (IE00B03HCZ61).

double post, please delete

I am curious, do DeGiro report holdings of ETFs to the Irish Revenue?

How are ETFs taxed within a company? Exit tax or CGT or corporation tax?