Irish Stamp Duty on US ADR's

G

galwegian44

Registered User
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Hi,

I've searched the Revenue website and while it's not straightforward I'm assuming that I have to pay the 1% Stamp Duty on Irish company shares (say Ryanair) even if I purchase the shares on a foreign stock exchange (multi-listed).

On one of the previous threads in AAM a poster stated that stamp duty is not payable if you purchase a US ADR of an Irish company. Does anyone know if this is true as Ryanair does indeed have US ADR on the Nasdaq. I cannot find anything to explain this on the revenue website.

Thanks in advance.
 
What is the reasoning behind buying Ryanair ADRs on the NASDAQ rather than buying shares on the Irish or UK exchange?
 
jpd said:
What is the reasoning behind buying Ryanair ADRs on the NASDAQ rather than buying shares on the Irish or UK exchange?
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Hi jpd,

As stated above I'm wondering if 1% Stamp Duty is payable on the Ryanair ADRs?

Thanks.
 
Is that they only reason you are buying the ADRs?

I think holding ADRs on the NASDAQ could leave you open to paying estate taxes in the US apart from the exchange rate risk
 
jpd said:
Is that they only reason you are buying the ADRs?

I think holding ADRs on the NASDAQ could leave you open to paying estate taxes in the US apart from the exchange rate risk
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Yes, just trying to figure out the most efficient way to purchase shares for a multi-listed company.

Thanks for the estate taxes thought, I hadn't allowed for that possibility and whether it is relevant or not. Federal estate taxes are zero under $11m so I think I'm OK there and I'm not sure how the IRS would determine State estate taxes as I don't have a USA address.

Cannot seem to find anything on the ADR Stamp Duty question on the Revenue website though.

All the best.
 
galwegian44 said:
I cannot find anything to explain this on the revenue website.
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Stamp Duties Consolidation Act, 1999, Section 90

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.
www.irishstatutebook.ie

I believe it's section 90(3) of the stamp duty legislation that exempts ADRs on marketable securities of a company registered in the State from stamp duty.

galwegian44 said:
Federal estate taxes are zero under $11m so I think I'm OK there and I'm not sure how the IRS would determine State estate taxes as I don't have a USA address.
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The threshold for US estate taxes is a lot lower for a non-US citizen. $60,000, not c.$11m.

 
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