The previous replies seem clear cut - no deemed disposal and no tax for the original poster's situation. I am in a similar situation where I will become non-resident (whilst holding a DeGiro Irish-domiciled iShares ETF on a European exchange) and am trying to understand the exit tax situation whenever I sell, but am just wondering if it's a bit more nuanced?
The revenue website (
https://www.revenue.ie/en/jobs-and-pensions/tax-residence/tax-tax-credits-non-residents.aspx) states that if you are non-resident, your ordinary residency and domicile will affect how you are taxed. E.g.
"If you leave Ireland and become non-resident, you continue to be ordinarily resident for three consecutive tax years.... For these three years you must pay Irish tax on your worldwide income except for:
- income from a trade or profession, no part of which is performed in Ireland
- income from an office or employment, where all the duties are performed outside Ireland
- other foreign income, for example, investment income, if it is €3,810 or less. If it is more than €3,810, the full amount is taxable."
Q1: So from this it seems that as a non-resident but ordinarily resident, a gain on the sale of an ETF would be liable to the 41% exit tax (if more than €3,810)?
Beyond the third year, when you become non ordinarily resident also, it states that "you will pay Irish tax on any gains you make in Ireland".
Q2: Is the sale of an Irish-domiciled ETF whilst the unit holder is non-resident and non-ordinarily-resident deemed a gain made in Ireland and thus subject to the 41% tax?
The above guidance seems relatively clear if I am understanding it correctly, but my confusion arises from the following Revenue document on Investment Undertakings ('Tax and Duty Manual Part 27-01A-02, section 4.2.8, see here:
https://www.revenue.ie/en/tax-profe...ins-tax-corporation-tax/part-27/27-01a-02.pdf) where it states that "Exit tax is not required to be deducted in respect of...non-resident investors who invest in a fund set up on or after 1 April 2000."
Q3: Is this just procedures for fund administrators, or is it stating that non-resident investors are not liable to 41% exit tax? (which seems to contradict the above)
Many thanks in advance for any clarity on any of the above questions!
