# when to pay tax on Irish UCITS e.g. ETFs



## bogle (1 Jan 2009)

Hi Everyone,
I know this subject has been discussed to death here but I’m still a bit unclear on certain aspects of the taxation of Irish domiciled UCITS like certain iShares ETFs (UCITS III) or the ISEQ20 ETF.

     Here’s what i think I know from reading all the relevant posts and the 2009 TAB Guide.

    Taxation on profits made from sale of UCITS such as an Irish domiciled ETF e.g. ISEQ20 are subject to exit tax.
  As of 2009 the exit tax will be 26% (got this from the TAB Guide for 2009).

  If I sold some iShares ETFs in say June 2009 and made a profit when do I pay this exit tax to the revenue? 
  Is it paid as preliminary tax in 2009 – e.g. 31st October pay preliminary tax for 2009?

 If I received distributions from iShares or ISEQ20ETFs e.g. dividends, I presume the tax (20% plus 1 % income levy??) has to be paid on these by the 31st October 2009 deadline as well?

And any exit tax and/or distribution tax occurring in November and December of 2009 to be accounted for when filing the 2009 tax return by 31st October 2010.

      Thks,
  A confused Bogle

 PS: I know there is no capital gains tax allowance on profits made on UCITS and that losses on one can’t be offset against gains on another and that there is no stamp duty payable on the purchase of ETFs in Ireland. Not so sure on the 8 year rule?


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## PMU (20 Aug 2009)

I’ve just phoned the Revenue Commissioners asking how one makes a tax return for distributions from exchange traded funds (ETFs). The person who answered my call: (a) hadn’t heard of ETFs or UCITS; (b) couldn’t find anyone in their office who knew about the tax treatment of distributions from ETFs; (C) suggested I attach details of the distributions in a note to be sent in with the form 12, where “it would be looked at by whoever is dealing with the form”.


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## Rory Gillen (21 Aug 2009)

I believe your understanding is correct - you should include any gains and distributions in your preliminary return to Oct 2009.
Deemed disposal i applicable after eight years if you have not sold by then.

Rory


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