Shares held in Luxembourg public company

[jfitzer]

Does any know what the tax treatment of shares held in an unlisted public company registered in Luxembourg? Seemingly the shares are in a property company and have offshore status. Is there a different tax treatment to shares in such a company as opposed to normal Income Tax treatment on the Dividends and CGT on the Gains.

 

[Tenacious]

Foreign dividends are taxed under Schedule D Case III income. You are taxed on the net payment you receive. Irish dividends on the other hand are taxed under Schedule F income. This means you are taxed on the gross amount of the dividend, but receive a tax credit of 20% for the Dividend Withholding Tax deducted at source.

 

[jfitzer]

Thanks Tenacious. I have some weird paperwork which says the "Dividends are taxed at a reduced rate of 25% (as opposed to 47%)" and the "Capital Gains Tax charge on sale is 23%". The 23% seems more like an exit tax rather than a CGT - the paperwork is really confusing as it seems to condrict itself.