investing in shares and the taxation implications if that's what you're concerned about then
hopefully this video will throw some light on the situation for you
there's two types of taxes you're going to be concerned about if you are investing in
shares one is capital against tax and the other is given to dividend withholding tax that's a tax
on the dividends you receive so capital gains then obviously a capital gain is where
you buy your share of shares and dispose of the amount of profit and you have incurred a gain
because the sales proceeds or the sales price of your disposal
exceeds the acquisition cost of the shares in that situation if the capital gains tax to pay
perhaps and uh there's an annual exemption in ireland of i think it's 1270 euros
or thereabouts yeah there's a personal exemption annual exemption in ireland of 1270 euros
and you must pay capital gains on the shares obviously if you don't dispose of the shares
if they appreciate in value but you hold on to the shares in other words like me you're a medium
to long-term investor then you don't have to worry about capital gains for a while but you will incur
again well then obviously have to pay capital gains you register with the revenue commissioners
and you fill out a form yourself if you want to or you can get your accountant to make a return
but you will have to do a return in relation to disposals then between the 1st of january and
30th of november in any given year you must pay the capital gains tax by the 15th of december
of the same year and disposals between the 1st of december and the 31st of december you must
pay by 31st of january of the next year so that's essentially the situation in relation to capital
gains tax you paid online with revenue or you must register with revenue and you can file the return
by filling out a form or completing it online and losses then you can offset losses
against your gains in any given year but you can't carry forward losses you must use
the losses that you've incurred in respect of shared disposals in the same year against gains
incurred or made as it were with chairs in any given year in relation
to calculating the gains on the shares it's a very straightforward calculation if you buy a
share and hold it for a period of time where it gets difficult and potentially complex
is where you buy a number of different shares at different times and you buy shares of a different
class then the calculation of the gains on your various shares if you make various disposals
can be complex enough so you probably will need to get assistance from an accountant unless you're
fairly good yourself in terms of maths and calculations and accounts and so on
the other type of tax you need to be concerned about with shares investments and so forth
would be dividend withholding tax so obviously if you hold shares in any company and they pay
a dividend once or twice a year then you've got dividend income now in relation to irish shares
the dividend that you're going to receive is going to be a net dividend
because the company that's making the dividend payment has an obligation to withhold tax
so say ryanair is making a dividend payment then the payment of the dividend to you is going to
be a net payment and they will have withheld the dividend withholding tax and they will
be obliged to remit that and return to the revenue commissioners it gets a bit more
complicated when you are receiving dividends from different jurisdictions for example united
kingdom or united states there is double taxation treaties with various countries ireland would have
taxations ratio treaties with different countries and this is obviously to ensure
that a taxpayer he's not paying tax twice on the same income so there will be a tax
treaty and how it is going to impact on what you receive and the amount of tax you pay
will depend on which country the dividend is coming from for example united states have a 20
or 30 percent withholding tax if you fill out a particular form
so coming from the united states it's 15 or it's 20 or 30 percent depending on whether
you fill out a form or not that's the sort of withholding tax you're looking at there from
various other jurisdictions there's different rates of withholding tax generally you'll be
receiving your dividend net in other words the tax will have been withheld by the particular company
that is paying the dividend however in relation to uk dividends the dividends are paid to you growth
so you will be obliged to return make a return and account for those dividends that dividend income
to the revenue commissioners now if you have a platform or you're buying your shares and selling
your shares investing on a platform like davie select or the gyro you need to check with them
what exactly is the situation i know for example because of accounts with
both of those companies that davies and i've been making inquiries about this have a return
a tax return form which will give you a record once a year of the tax situation in respect of
your dividends and how much tax you've paid and whether the dividends paid you have been
subject to withholding tax or not so that's what comes from davie select in relation to the gyro
then the jail generally will receive the dividend net and the withholding tax will have been paid
already so that's something that that you need to check so you need to check with whoever you're
investing with be it david be it to jail or be it some other provider to help such a service and
dividend withholding tax is one of the taxes you're going to be concerned with capital gains
tax is the other you may need assistance you may not um but if you buy shares and hold them
then all you have to be worried about really wouldn't be the dividend tax and obviously
if the payments have been made to you net well then your tax in respect to that dividend income
is being paid and so forth and it's up to the company the payer of the dividend to actually
make a return to the revenue commissioners hope you find this video useful if you
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