Selling shares - tax implication

S

sallyhunter

Guest
Hi All,

In 2007, I sold shares that I acquired through a German Bank. I am resident in Ireland so that my income is taxable in Ireland. I paid Capital Gains tax in 2007 and calculated it with 20 %. Was this the correct tax/percentage?
 
20% is the correct rate for Irish CGT. How exactly did you calculate your tax liability? Was any German tax deducted?
 
Hi,
thanks for your questions. I have clculated the CGT in Ireland in calculating all individual gains from the sale of the shares (difference between initial costs and sale price) and then deducting the personal tax exemption of 1270 €. However, I did not have to pay any tax in Germany as there is a rule that when you sell shares more than a year after buying them, the gains are tax free. This is all to change from 2009 with the introduction of a new tax called Abgeltungststeuer whereby gains are taxed at source. Any thougths on that?

Sallyhunter
 
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