How to pay tax on UCITS ETFS?

davebu

Registered User
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Hi guys,
I have recently started investing and on 2019 I have made 34€ on profit from selling UCITS ETFs and I am trying to understand how to declare them.

I have read the Revenue document Exchange Traded Funds (ETFs) Part 27-01A-03 where it states the following
Acquisition of an EU ETF must be included on Form 11 in panel E at line 322(e) and income and gains from same must be included in 322(a)/(c), as appropriate

Does that mean that every year I buy ETFs I have to declare them on 322(e)

And in regards to 322(a)/(c) I am not sure what to put on each field.
Is payment taxable at 41% the amount I will pay in tax, so I put (41% of 34) and then on Gain taxable at 41% I put the total gain of 34€

English is not my mother tongue and the legalese English is a little bit challenging for me.

Thanks
 
Yes, you are correct with the requirement to disclose the UCITS purchase in Box 322 (e). You put dividends or payments from UCITs in 322(a) and gains in box 322(c). You put the dividend and gains (sale price less purchase price) in the relevant boxes and the system works out the tax at 41%. It may be easier for you to file an electronic Form 11 through ROS.
 
Do you think the DWT is changing from Jan 2020. My broker is unsure. Currently Irish ucits pay out gross.
 
Question re: VANGUARD FUNDS PLC FTSE ALL-WORLD UCITS ETF . The ISIN is IE00B3RBWM25 and it is administered in Ireland.
and the Vanguard S&P 500 UCITS ETF: another ISIN starting with "IE"
When I got my tax pack from Davy it showed zero dividend withholding tax for these funds. Yes they are listed under "Irish Investments".
I'm new to this and would be interested if any of you have an explanation and If I have a liability for declaring dividend for tax.
 
Question re: VANGUARD FUNDS PLC FTSE ALL-WORLD UCITS ETF .
I've since found out the following: that it's an Irish Domiciled Fund and it is held on a recognized clearing system and accordingly the fund does not deduct any tax. The obligation to pay and report all taxes falls to the investor through their annual tax return. This investment comes within the meaning of section 739B of the TCA 1997 and any income or gains are treated as income and gains from an offshore fund in accordance with Section 739G(2)(B). Regarding income – payments would be liable to Exit Tax @ 41%.
 
Don't forget the deemed disposal every 8 years, either

A nightmare to account for unless you invest using an Irish fund but then you may avoid the high annual charges
 
Don't forget the deemed disposal every 8 years, either

A nightmare to account for unless you invest using an Irish fund but then you may avoid the high annual charges

Why is it not a nightmare with Irish funds?
Do Irish funds calculate the tax for you?
 
Why is it not a nightmare with Irish funds?
Do Irish funds calculate the tax for you?
Yes, the Irish funds calculate the tax and pay it to the Revenue on your behalf and deduct the amount from the value of your fund by cashing in some of the units
 
Yes, the Irish funds calculate the tax and pay it to the Revenue on your behalf and deduct the amount from the value of your fund by cashing in some of the units

Wow, that will really save some time.
When you say "Irish Funds" do you mean an ISIN starting with IE, or an actual Irish brokerage account?
 
ETFs won’t calculate and deduct Irish tax for you.

I suspect jpd is referring to unit-linked funds offered by Irish life companies.
 
ETFs won’t calculate and deduct Irish tax for you.

I suspect jpd is referring to unit-linked funds offered by Irish life companies.

Okay, this is what I thought. So an Irish brokerage account.

The fee's are so much lower with DeGiro that I'd rather just set up a good excel sheet and figure out the tax instead.
I can't find any brokerage accounts that can compare fee wise to DeGiro.
 
Maybe consider Investment Trusts? They offer a similar level of diversification as ETFs, without the hassle of deemed disposal. Profits are subject to CGT, and not income tax.
I'm not sure if you need to declare all purchases and presume you still have to make annual returns. Maybe @Sarenco can confirm?
 
Investment trusts fall under the normal income tax/CGT regime, like any other shares.
 
I am new to investments. Following this thread, I assume that ETFs are not tax efficient than investment trusts in Ireland. Am I correct with my assumption? Is there any data to show which investment trust is equal to Vanguard Life Strategy 60 ETF? Because I planned to buy this ETF after doing a loads of research.
 
I am new to investments. Following this thread, I assume that ETFs are not tax efficient than investment trusts in Ireland. Am I correct with my assumption?
It depends on a variety of factors and assumptions.
Is there any data to show which investment trust is equal to Vanguard Life Strategy 60 ETF?
No investment trust is “equal” to Vangusrd Life Strategy 60.

Take a step back.

Why did you decide you want to invest in Vanguard Life Strategy 60? For starters, 40% of its assets are allocated to sterling denominated/hedged fixed income securities. That makes no sense for a Eurozone-based investor.

I would suggest posting per the “money makeover” format for more focused advice.
 
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