Why is ETF Income Tax 41% and standard Income Tax 40%?

[gonesp]

Hi there,

ETF Income Tax is 41%. Why is this, when we only have two bands of Income Tax (20% and 40%)? Where does the extra 1% come from on the highest band to reach 41%?

Thanks!

 

[jpd]

Because it is - there is no linkage between income tax rates and Exit Tax

Top rate income was 41% as recently as 2015
Exit Tax was sort of linked to the DIRT rate in that it moved up when DIRT moved up but it has never been reduced
Historical Exit tax rates
01/01/2001 to 01/01/2009 23%
01/01/2009 to 06/04/2009 26%
08/04/2009 to 31/12/2010 28%
01/01/2011 to 31/12/2011 30%
01/01/2012 to 31/12/2012 33%
01/01/2013 to 31/12/2013 36%
01/01/2014 to present 41%

 

[gonesp]

Because it is - there is no linkage between income tax rates and Exit Tax

Top rate income was 41% as recently as 2015
Exit Tax was sort of linked to the DIRT rate in that it moved up when DIRT moved up but it has never been reduced
Historical Exit tax rates
01/01/2001 to 01/01/2009 23%
01/01/2009 to 06/04/2009 26%
08/04/2009 to 31/12/2010 28%
01/01/2011 to 31/12/2011 30%
01/01/2012 to 31/12/2012 33%
01/01/2013 to 31/12/2013 36%
01/01/2014 to present 41%

Makes sense! Thank you!