Why do I need to submit a form 11 and not a form 12 for etf? Even when my non paye income is less than 5k?

[Erdaiag]

As per title. My understanding is thst we submit a form 11 even for a few hundred euros worth of etf, why not use a form 12?

 

[dublin67]

I don't specifically know the answer but I would suggest it may be because selling ETFs, to the extent that these constitute an offshore fund, makes you a chargeable person. A chargeable person is typically required to file a Form 11.

 

[Ixlandia]

And how do you become a ‘chargeable person’? Do you fill out a Tr1 form first?

Thanks

Ix

 

[dublin67]

Yes this would be the simplest way. If you have an accountant acting for you then the they can use their ROS login to register you for income tax. Employees are typically registered for 'PAYE - EMP' but not income tax. When you are registered for income tax you typically are a chargeable person.

 

[Lisboa]

As per title. My understanding is thst we submit a form 11 even for a few hundred euros worth of etf, why not use a form 12?

I'm not sure it really makes a difference because both Form's 11 and 12 both have the same 'Foreign Income' section.

Are you sure you *must* use form 11? Form 11 is generally for self-assessed individuals - those who are self-employed, or whose main source of income is rental income or investments. Or PAYE employees with more than €5,000 additional non-PAYE income.

Form 12 is for PAYE employees with additional non-PAYE income of less than €5,000.

 

[Lisboa]

There's no option to edit my previous post, but I'm just comparing the two forms more closely today and I can see that Form 12 doesn't have the 'Gain taxable at 41% (S. 747E(1)(b)(ii))' category that is on Form 11 under section 322.

The ETF manual says "Acquisition of an EU ETF must be included on the Form 11 in the Foreign Income section as appropriate."

There is a Foreign Income section on Form 12 too though, but it doesn't appear to be as in depth as Form 11.