Capital Gains Tax Ireland | Calculating, Paying & Filing CGT in Ireland
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- เผยแพร่เมื่อ 1 ส.ค. 2024
- A step by step guide to Capital Gains Tax in Ireland. In this video, we explain how to calculate what you owe, where & when to pay CGT, and all the other important stuff you need to know about capital gains tax in Ireland (stocks & crypto).
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Capital Gains Tax can seem like a confusing topic, especially if you're a beginner investor in Ireland trying to figure out if you owe capital gains tax on your stocks/crypto (spoiler alert - you probably do) but in this video, we break it down for you.
💡 Key Moments:
00:00 1️⃣ What is Capital Gains Tax?
00:40 2️⃣ CGT Ireland
01:24 3️⃣ CGT Example with €1,270 Exemption
02:56 4️⃣ When to pay CGT in Ireland
03:52 5️⃣ How to pay CGT in Ireland
07:15 6️⃣ Filing CGT Return
08:25 7️⃣ Claiming a Loss
09:51 8️⃣ Calculate CGT
10:22 9️⃣ 'Bed & Breakfast Sale'
🍿 You might also like:
The Best Crypto Tax Software: • Best Crypto Tax Softwa...
How to file a CG1 Form: • How To File a Capital ...
How to file a Form 12 (Income tax return): • Filing a Form 12 (Inco...
How to file a Form 11: • How To File a Form 11 ...
Bed & Breakfast Sale: • Avoid Capital Gains Ta...
📸 Snapshot Summary:
Capital Gains Tax Rate in Ireland = 33%
Annual individual tax exemption = €1,270
You PAY CGT in the year you sell*
You FILE your return the following year (by Oct 31st)
If you sell during 1 Jan - 30 Nov, pay by 15 Dec
*If you sell during December, pay by Jan 31st of following year
📋 Tax Forms:
CG1 Form: revenue.ie/en/gains-gifts-and...
Form 12 (income tax return): revenue.ie/en/self-assessment...
Form 11 (chargeable individuals): revenue.ie/en/self-assessment...
🖥 Useful Links:
Capital Gains Tax Guide | Revenue.ie : revenue.ie/en/gains-gifts-and...
CGT Exemptions: revenue.ie/en/gains-gifts-and...
PDF Guide: craddock.ie/wp-content/uploads...
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Vidi.ie | bit.ly/Vidi-Productions
📌 Topics
#CGT #capitalgains #investingireland
🎵 Music
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⚠️ *IMPORTANT* *UPDATE* ⚠️
You NO LONGER need to register for ROS in order to pay your Capital Gains Taxes (unless you're seen as a 'chargeable individual' by revenue - see below). Revenue has added a 'Make a payment' button to the 'My Account' page:
1️⃣Login & scroll down to 'Payments/Repayments' on your 'My Account' page
2️⃣Choose 'Make a payment'
3️⃣Select 'tax' and then 'capital gains tax'. You can make a payment here.
⚠️ If the above isn't visible for you, message revenue through MyEnquiries, tell them you wish to pay CGT, and they will activate button for you!
💡You only need to register for ROS if you are deemed to be a ' *chargeable individual* ' from a tax standpoint. A chargeable individual is someone who is 1) self-employed or 2) Has greater than €5,000 in NON-paye income (income from side hustles, renting a room, dividend/staking income, etc.)
Hi, thanks for your videos on these topics - they are very helpful. Regarding sending a payment via the 'Make a Payment' section of 'My, Account', I am seeing many options, but no option for Capital Gains Tax. Do you have to register for something to see this option? Do you still have to have an ROS account to be registered to pay CGT and fill in the CG1 form? Thanks!
@@jamesvancoppenhagen1988 yeah I am looking for same but didnt found option to pay CGT
@@jamesvancoppenhagen1988 I experienced the same. I rang Revenue to ask them about it, they told me to do an enquiry through myAccount with the following details:
Enquiry relates to: "Tax Registration / Cancellation"
More specifically: "Registration (non-company)"
Enquiry details: Ask to be registered for Capital Gains Tax
I only did this today but the lady on the phone said it would take around 3 days for them to process the registration. "Make a Payment" in myAccount should then have an option for Capital Gains Tax. If I'm not registered by the end of the week I'm going to ring the registration department to try get it pushed through.
@@aarondaly7428 This is so helpful, really appreciate the reply, Aaron! I actually did submit an enquiry, but I'll set up another with your suggested details. Thanks, and best of luck with your registration.
@@aarondaly7428 Having the same issue and this helped a lot, thanks!. If it's no trouble, post how the rest of the process goes for you or if ringing them again helps at all. Cheers
Came here from Tik tok lads - thought you might like to know
Love it, Colm! 😎 Great to know - see you in the next one. 👉
- Cian
This is absolutely class. I never really knew much about how to reduce CGT and this is awesome!
Nice one, James - a bit of extra cash for you to reinvest! Thanks for the great feedback.
Just found your channel today and this video is amazing. So simple and clear. Looking forward to watching more. Thanks lads!
Really appreciate that and cheers for taking the time to write the feedback. 🙏
- Ste
Great work lads, first video I've seen break it down this simply for Irish tax
Cheers boss - really appreciate that
Absolutely great videos! we need this so much in Ireland!
Thank you Gio! Glad you found the channel and love to hear you're enjoying the content.
- Ste
Great stuff again, guys. I'm remarkably uninformed on all things finances, so you're helping out a lot.
Nice one, Baz. Some nice crypto tax breaks in Berlin as far as I'm aware! Make the most of it 😏
- Ste
US- based financial advisor here - It's amazing how different the Irish system is to the US. Really interesting to learn about. Great stuff guys. simple and clear.
Thank you! The tax issue around stocks was the biggest question mark for me. Great to have it all laid out here! I just recently registered with Ros as I’m a freelancer so at least I have that step done! Oh and I’d recommend that everyone give them self plenty of time to get set up on ROS before the deadline to declare the CGT. It took me a while to get everything sorted.
Great note re: deadline, Hannah - thanks for flagging! Best of luck with the freelancing and glad you found the video helpful 🙌
brilliant! you guys nailed it with such a clear explanation, even for a tax-dummy foreigner like myself. many thanks
Thank you so much for watching! The taxes are tough to get your head around for sure. 🙄
- Cian
Very simple & clear explanation !!! Thank you 🙏
Thanks for watching, George! See you in the next one. 👉
- Cian
Great content, explained very well in a way that’s easy to understand. Well done 👍🏻👍🏻
Cheers Dave!
You're very good guys. I am always coming back to see your videos once and again. Hope you keep on uploading more videos! Thanks thanks thanks
Sorry for the late response - big summer off!
And thank you, yes we need to get back into creator mode soon :)
So helpful! You are brilliant. Thanks for making this so simple.
Thank you for watching, Charul - really appreciate the kind words. 🙏
- Cian
I never copped that B&B move! Will be using that in future.
Great video guys! Thank you so much.
Glad you liked it, Veronique, and thanks for watching! 👍
- Cian
Thanks a mill lads ! Came here from TikTok
Howiya Martin - cheers for watching, and also nice to see a bit of TikTok overflow! Shout if you have any topics you'd like us to cover. Great to have ya on board
Great content! You guys are great.
Thanks, JagiYogi!
Great video lads! Just happened across the channel today! 👏🇮🇪
Thank you sir, early days for us but appreciate the note! And likewise - great to see some other Irish focused channels already out there.
@@TheLearningsReport Yeah the lack of information in Ireland around investing is crazy! Amazing to see more people spreading knowledge 👏
Subscribed - looking forward to following along with your content 🙌
Great video and very nice explanation!
Appreciate it! Thanks for watching
Incredibly useful, thank you
You're very welcome!
Great video lads 👍🏻
Thanks, Darren! And cheers for watching!
- Cian
Ye should do a video where you explain what to do when you have filed late or sent payment late for CGT
Hey! So for every day that the payment is late (without extenuating circumstances) there is an interest rate that is charged daily. I believe as of most recent estimations, the rate is 0.0219 percent per day. Revenue will likely request this is paid through your MyRevenue portal!
Amazing video! Can you give us an example of the bed and breakfast strategy?
Hey thanks for watching! If you need any help with paying or filing CGT, feel free to ask in the comments. We'll try help as best we can or at least point you in the right direction!
I think you touched on it there with the bed and breakfast scheme but just so I understand what if I’m a long term investor and I just buy and hold is it only when I decide to sell shares at some point in the future that I have to pay ?
@@rayb558 Hey Ray - in short, yes, but a couple of quick caveats.
- If your stocks pay dividends, you'll need to pay tax on the dividends (this is taxed at your income tax rate, not CGT)
- If you hold ETFs (watch our video on this if you're unfamiliar) then you'll need to pay tax every 8 years, even if you don't actually 'make a sale'
But yes, to your main question, if you don't sell your stocks - you shouldn't need to pay CGT until you actually sell them
amazing explanations. thanks for that
Appreciate the feedback Dav, let us know if there’s any other content you’d like us to cover 👌🏼
Nice one lads!
Thanks, Karl - shame we can't all enjoy that lower CGT over in the UK!
Hey guys, when registering for ROS, is the first step to apple for your ROS Access Number (RAN). Didn’t see it on the video but thats what shows up for me on the ROS/revenue website
Hey Jason - just to confirm you're aware that you now only need to create a ROS account if you're declaring non-PAYE income of €5,000 or more. This was an update since we posted the video. Revenue changed the system so that you can now make a payment for CGT without needing to register for ROS. If you're only trying to pay/file capital gains tax and nothing else, then you won't need to do the ROS steps, you can just go to 'Make a payment' on your my account page.
If you do still need to do a Form 11, then correct, you just follow the steps to get your RAN and then the process should begin to match up with the video (again, revenue have made some small changes since we recorded at first!)
For the RAN, I think we forgot to mention it as it wasn't visible for us when we went back to record this clip! Thanks for flagging.
@@TheLearningsReportgood stuff, thanks guys!
Thanks a million, this helped alot.
Hey Khalid - No worries! Glad it was able to answer some of your questions.
Awesome, this is excellent info.
Nice one, Gearoid, appreciate the positive feedback! Let us know if you need help during the process 👌
Awesome content guys! would like to see what are the tax implications of FX trades derived from buying and selling US stocks and how to deal with them
Cheers for the comment! Going to be totally honest and say we're not totally sure on what you're asking here 😂But that could easily be our lack of knowledge on the subject. Can you elaborate?
- Ste
thanks, great video!!
Thanks, Fabio! Glad you found it helpful. Shout if you have any other topics you'd like covered 👍
- Ste
That's great somebody finally made a video for Irish residents but you forgot to talk about double taxation treaty and dividends and also self-reinvested dividends to avoid paying taxes.
Hi Laurent - If you watch our tax form videos, we run through that in more detail 👍
However, for your dividend point - I want to offer some clarification. If you have DRIP (Dividend Reinvestment Plan) offered by your broker, you still are taxed on the dividend even though it's reinvested automatically. So although it's automated, you're still liable for tax on it even though you technically didn't 'receive' it.
If you're referring to accumulating ETFs in terms of dividends, then correct - those you can purchase and avoid paying the dividends directly. Our video on ETFs goes through that in detail.
Thanks for watching and for the comment!
- Ste
Love this video
Cheers Kieran, appreciate it and glad you found it helpful!
Hi guys great video, you make it very easy to understand. The part I’m confused with is actually filling in the form. Payment is no problem thanks to your clear and concise instructions, but using my pen and filling in the CGt1 form is to much for me to understand. I’m dealing with crypto currency...
Hey Rob, glad you found it helpful - appreciate the feedback.
So at a high level, you can treat your crypto like stocks. When it comes to the CG1 form, you basically need to do most of your calculations in your own time (on a notepad, excel sheet or however you prefer), and then the CG1 is essentially just filling in your calculations. The mistake people make is that they think they need to fill out the whole form - where in reality you'll probably only need to fill in a couple of lines at most. Just find the sections applicable to you, and start there.
Gains / Losses / Net chargeable gains is likely the most relevant section of the form for you. We're going to be doing a video on how to fill out these forms at some stage soon, but let us know what specific setions are confusing you and we can do our best to answer here in the comments!
It's also worth remembering that as long as you file on time, even if there is a mistake on your form (an accidental mistake), revenue are unlikely to punish you for that - they'll just ask you to fix the error. So if in doubt, it's always better just to file something, and then you can always re-file without penalty (generally speaking).
- Ste
Can you please make a video on how to file the CGT to the revenue late (for both gains and losses)? As well as video on how to read the 3 statements DEGIRO release each year, which includes the statements charges and if the charges and fees can be added as losses/deducted from the gains?
Many thanks
Hi Richard, as far as we're aware (and note, we haven't had to file late ourselves yet) the submission of the form is the exact same, you just need to make the figure adjustments yourself based on the late-filing surcharges as outlined by revenue (link below). If you're filing a CG1 form, you'll see on row 25 (d) where there is space to add in the surcharge figures.
For your statement video request, thanks for the idea, we'll add it to the list!
Cheers,
Ste
@@TheLearningsReport Please do a video with Degiro Tax report. Is it gross or net for CGT ? I have discovered simple portfolio app and there's a difference big time. For swing traders or position traders with dozen of pages of trades it is emotionally dragging. How much loss can we carry on from a year to an other please ?
Well done lads
Thanks for watching, Rising! See you in the next one.
- Cian
Supper cool 👍 you guys doing a great video explain, now I know how to doing my Tax Thank you to you guys 🤗 supper you guys Rock 🎸
Glad it helped! Appreciate the positive feedback 🙏
- Ste
Great videos, thank you. Can you recommend any Irish forums discussing tax strategies? For example, what are the merits and drawbacks of creating a limited company?
Hey Ste - thanks for the feedback. Askaboutmoney.com is the Irish consumer forum and a large number of the searches we do around random topics seem to lead there. The conversations on the forum are (or seem at least) far more informed than what you might see on Reddit, for example.
That being said the Irish Personal Finance reddit thread can have some great convos also - so I'd suggest having a look there also.
Then of course boards.ie has a tax thread every now and again too!
- Ste
Very informative
Appreciate it - hope it helped.
- Ste
Excellent video guys, 1) can you explain the tax in the dividends, still the same method?Or how is the process when you are already paid tax in the dividend gains from companies overseas?
2) What about if that dividend is re-invest in the same company do I still have to declare those gains?
3) If for the current year, I only sell a bit of my my shares let’s say less than the exception, i have to declare that amount as well even though is less than the exception?
Hope I explain myself. Thanks.
Cheers Claudio! Thanks for watching
1) So dividends on individual stocks are calculated at your marginal rate of income tax i.e. 20%/40% (Plus USC and PRSI) - not at the CGT rate of 33%. Dividends on ETFs are charged at 41%.
2) If you receive dividends from a company (or have it set so that dividends are reinvested automatically) you still are 'deemed' to have received the dividend, and still need to pay the tax due on it - even though you're paying tax on funds that you've already reinvested. The exception is if you are holding an Accumulating ETF, in that case, you don't need to pay tax on the dividends - you just pay the tax that's due every 8 years due to deemed disposal rule (see our video on ETFs for more detail on this)
3) Correct - if you sell a stock (for a gain or for a loss), you must declare it at the end of the year, regardless of whether the total comes under or above the exemption. In simple term, if you sell (anything at all), you must file!
Thanks for this really useful information. One question, with RSU schemes and capital gains, why do do some companies hold nearly 50% of your stocks at vesting? Love the channel lads.
Hey Eoin,
Thanks a million for watching!
For RSUs, given that they are considered to be part of your income from an employment point of view, you will be charged income tax, USC and PRSI on RSUs and your employer will deduct this directly from your payslip at the vesting date. Generally speaking, some of the shares will be sold to cover this tax liability which is known as a “sell-to-cover” mechanism, meaning you don’t need to pay the tax liability directly out of pocket.
You can talk to your company to see if you can pay this liability rather than sell the shares.
CGT would be due if you later sold the remaining shares at a gain. We have a video which explains it here:
th-cam.com/video/HZ1StqSfEaE/w-d-xo.html
- Cian
Brilliant video. If I’m on illness benefits do i also pay this way? Thanks so much
Hi guys today I paid the first cgt in Ireland ... Hurray ... Thanks for your videos. Of course I had to contact Revenue because I couldn't find the right link ... they unblocked me and away ...
Hi Lucas,
A bittersweet moment - finally getting your taxes sorted - hurray! Paying tax - boooo!
Glad you got it sorted in the end and thanks for watching.
- Cian
Great content, well done!
Are you planning to do one on filling CGTs? Thats the bit that is a bit unknown for me, I'm not sure what I should be tracking as I buy or sell
Hi Edward, thanks for watching!
We can add it to the list! Is there something particular that you would like us to cover that wasn't covered in this video?
- Cian
For those who were interested (or just seeing this comment now) we've released two videos on filing your CGT/Income taxes! Links below:
CG1 Form (Capital Gains) - th-cam.com/video/YorwaTXEPYI/w-d-xo.html
Form 12 (Income tax Return) - th-cam.com/video/x4QVvH8DjM4/w-d-xo.html
@@TheLearningsReport Amazing! you guys are doing great work
@@mamba101 Cheers Ed
Hey Guys! Great video, I am so happy I stumbled upon this one! I just had a quick question. I have recently started investing in crypto, stocks and some ETFs. I am well aware of the exemption and I know that my gains are below that threshold. In that case do I still need to create the ROS account and fill in some details stating that my capital gains were for example €1000 which is lower than the exemption €1270 so I have nothing to pay or I can totally ignore this step and wait when once day my gains are higher than that?
Hey Esmond,
Glad you liked the video and found it helpful.
So, because you are below the threshold, you do not need to pay CGT as none is due. You will, however, have to file the gain the next year and you can do this through a CG1 form without registering for Ros.
We have a video on this which you can check out here: th-cam.com/video/YorwaTXEPYI/w-d-xo.html
- Cian
Gents, this is amazing. So helpful. When you are choosing the year to register the gain via the return, does the gain refer to the year you sold in? Or the actual years to that point the gains were made?
You're welcome!
So a little unsure what you mean when you say 'choosing the year'. If you're filing a CGT return, you generally would be filing the return to declare any gains you made from the sale of stocks/crypto in the PREVIOUS calendar year. So for example, any profits you made last year from stocks/crypto (2021) would be FILED as part of your CGT return this year (2022). With CGT it needs to be filed annually, so if you have gains to declare from earlier year, you'll need to file a late payment with revenue, and its best you speak directly to revenue about that (if that's applicable to your situation!).
So to your question, and building on the simple example above, the gain would refer to any profit you made in 2021 (Jan 1st up until Dec 31st of 2021).
Hope this answers your Q?
- Ste
Great video, just wondering then if your Capital Gains are lower than your exception, do you still have to submit it to revenue?
Hey guys! Recently discovered you and your work is fantastic!! Thank you very much!! Quick question: Does it make any difference in CTG if you aren’t domiciled in Ireland? I mean, you are Ordinary resident but not domiciled in Ireland buying and selling shares/stocks in Revolut or Degiro. Thank you!!
Hey Filipe,
Thanks for watching!
Yes, it does change but it can be very specific to a person's situation. We'd recommend getting tax advice for your situation, especially if it is a potentially large CGT liability.
Generally speaking, if you are not domiciled in Ireland and don't remit the gains back to Ireland, you are not liable to CGT in Ireland (but probably are elsewhere). Found the below on Revenue's website:
"Non-domiciled individuals and the remittance basis of assessment
The remittance basis of assessment applies to foreign sourced income and foreign capital gains of an individual who although tax resident in the State for a tax year is not Irish domiciled for that tax year. Under the remittance basis of assessment, the non-Irish income and gains are taxable only to the extent that they are remitted to the State.
However, the remittance basis of assessment does not apply to the income of a non-Irish sourced employment attributable to the performance in the State of the duties of that employment."
- Cian
Thank you 😊
Glad it helped, Sadhana! You're very welcome.
Really great video. What happens if you are holding stocks for the long run? Is it only when you sell, be it one year later or ten later you pay? Also what if your are earning dividends but you keep that money in your trading account?
Thank you guys for a very informative video. Can I ask a question in relation to "expenses" relating to the acquiring and disposing for shares/crypto. Can we offset spread and other fees relating to the acquisition or disposal of the asset against the amount of CGT owed? Likewise if you availed of an accountant to perform the CGT return, could those fees be used to offset the CGT return? E.g. I see a "Commissions (spread) on Crypto" of almost €300, it would be great if this could be used to reduced the CGT due.
Hey great question. In short, it depends (and you'll likely need to get in touch with revenue to confirm about some of those expenses, and what can be deducted). Generally, the guidelines are roughly related to fees associated with the 'direct' acquisition of a share/crypto.
Trading fees can be added to your cost basis to reduce your tax liability (e.g paying €1 for a €100 trade means your cost basis would be €101).
Pretty sure accountant fees do not fall under the rules, or for example 'account fees' that you might pay for the privilege of having your account with a certain broker. I'm also pretty sure spreads, FX conversion fees, etc. also aren't applicable but I'd suggest double checking if in doubt!
- Ste
Hi guys, great video especially for people like me that recently moved in Ireland. For B&B sale do you need to do that at the end (30th Nov sale - 1st December re-buy) or you can do the buy-sell order at any point?
Hey Nikos,
Glad you found it helpful!
It can happen any time in the year but it will have different paying date implications. There are other factors to be aware of which we have highlighted in our video specifically for this which you can check out here:
- Bed and Breakfaat Sale: th-cam.com/video/EKGYfRHTGKo/w-d-xo.html
- Cian
Great video lads. Quick question. Are losses only deductible if they are from the previous year?
Thanks for watching, Steven! You can offset losses from previous years as well as the current tax year. They have to be allowable losses so make sure to double check that. There is more information on offsetting losses here: www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/if-you-make-a-loss.aspx
Happy Investing!
- Cian
wow thank you!!
No worries, Steven. Hope you managed to get everything sorted!
Hi Guys, only just found your channel, great stuff, very informative. Quick question, can you take out a Crypto loan to offset the CGT liability?
Nice one, Christy - thanks. To clarify, are you asking about using your crypto holdings as collateral to take out a loan as opposed to selling the assets themselves? Or to take out a loan to pay your CGT liability?
- Ste
wow this video was great even tho my head hurts haha , thanks
😂 an accurate synopsis. After a couple of viewings, it starts making a bit more sense!
Hello great videos I was just wonder how do u offset your losses from this year
Hey Paul,
Thanks for watching!
There is a section on the CG1 form where you can offset current (and previous) year allowable losses. We run through the CG1 form in detail in the video below - have a look and if still unclear, drop us a comment there:
CG1 Form: th-cam.com/video/YorwaTXEPYI/w-d-xo.html
- Cian
HI GUYS ITS CLEARLY ONE OF THE BEST VIDEOS OUT THERE......SHOULD I PAY TAX ONLY ON THE PROFIT THAT HAS REACHED MY BANK ACCOUNT OR ON THE PROFIT THAT I GOT FROM SELLING And still sitting in trading 212????
...thanks
Thanks VJ! So yes, once a taxable event occurs (e.g. selling a share) you will be liable for tax on that sale regardless of whether you withdraw the funds or not. The tax won't be due until December however, so you can do whatever you like with the money until then! Of course, you'll need to make sure you have the funds ready once tax season comes around.
- Ste
Another brilliant video lads! Only thing is I didn't need to sign up to ROS, under the 'Make a Payment' link in MyAccount I have the option to pay CGT tax, unless I'm doing it wrong?
Great stuff, Jetfuel, thanks for watching.
Great, since we recorded it has become easier to pay on MyAccount. You can pay on MyAccount and then file with the CG1 form (I believe you are a Form 12 user from your other comment).
Let us know how you get on. 👍
- Cian
Great content! Planning on doing a video on Deemed Disposal Tax? This bitch is scary! And especially for expats like me, who we may not stay in Ireland forever, definitely worth knowing how to bypass it, if possible at all. Thanks!
Cheers Thanos! Have you had a chance to watch our ETF Investing video (link below)? We cover deemed disposal in that, but there's definitely scope for us to do a focused video on it too with more details. Thanks for the suggestion and will add it to the list 👌
th-cam.com/video/InfLTMTllg4/w-d-xo.html
@TheLearningsReport. Quick question: what currency exchange convertor is approved by Revenue to use if we have to convert RSU sell gains from US$ to EUR?
Hi could you tell me What is the current CGT in Ireland for vanguard S&P 500 etf index fund ?
Great video. Could you please make a video on how to declare dividends to the Irish revenue as well? :)
Cheers Richard. Good shout - we'll add it in! Are you struggling on a specific part, or do you just mean a general overview of where to enter the info on the form etc. ?
@@TheLearningsReport I am completely lost on how to do it on the myAccount section (I believe that is the section to do it), so I tutorial explaining it all and showing how to do it using mock data would be great and it would most likely benefit other members :)
Sounds good, will do one on this a little closer to tax season 👍
I have CTG losses from 2021 & 2022, how do I go back to declare these losses ?
Great stuff lads, A quick question if I have made only 1K I still need to declare it, or what should I do?
Cheers Lucas. Yeah, any profits or losses from investing need to be declared. If you fall under the €1270 exemption, the process will be very quick and easy though - and will only take a couple of mins.
- Ste
Does anyone know if after paying your CGT do you have to pay for your dividends separately or is dividend tax included in your overall CGT payment ??
Thanks Guys. I got some clarity. I didn’t found any dividends tax. I use DEGIRO. And some dividends come 15% tax some not taxt. Reits to are different. How to calculate them ? I will be nice to see some video. Thanks again
Hey Yurivy - tax on dividends in Ireland is charged at your marginal rate of income tax (so 20% or 40% depending on whether you're in the higher or lower tax band, + USC & PRSI). It will also somewhat depend on what shares you hold, and whether Ireland as a DTA (Double Taxation Agreement with that country). For example, there is a 30% withholding tax on US Share dividends for non-US residents. However , if you complete a W8-Ben form for your stockbroker, a lower 15% tax rate will apply. As this tax is 'withheld' you don't need to really worry about it, as it's already taken from your dividend. You will then need to pay the balance (i.e an additional 5% or 25% depending on your tax band) to revenue when filing your tax return.
Please let us know if you have any follow-ups!
Thanks
Great video lads!! Just wondering as a Malaysian studying in ireland would I need to pay the cgt as well while I trade stocks and make some profit here?
Hey Jin, thanks for that. It'll likely fall down to your tax residency and how long you've been here for / plan to stay! Couple of links below that should guide you on this. The first is high level, while the second is a more detailed breakdown. Hope this helps.
High Level: www.revenue.ie/en/jobs-and-pensions/tax-residence/index.aspx
Detailed: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-02/02-03-01.pdf
Great video lads, thanks a million - One question, if I have invested in many different cryptocurrencies, do I have to declare every coin I have invested in and what I have made/lost from each one or is it a case of adding up the total figure gained/lost?
Hey Stephen, thanks a mill for watching.
Great question - luckily, you just have to input the total number in the CG1 form and Form 11/12. For your own records, I would keep proof of your calculation and any documentation/screenshots just in case Revenue ever asks you for proof.
Hopefully your crypto broker/exchange should have a summary of this anyway.
- Cian
Hi guys great video, what are the implications of paying tax if you are a day trader and also what is the situation with options trading? I read somewhere you have to pay RTSO on that which is 42%.
Thanks
Hi Jack, thanks for watching!
So, just to split out your questions, I'll start with the day trader. There are no real differences depending in what type of investing you're doing (long-term buy and hold vs. day trading), as it relates to stocks, you will still have to pay capital gains tax on your gains/profits. One implication is that you may have multiple gains and losses (hopefully not many!) throughout the year so it will be easier for you to maybe calculate the overall gain/loss for the period as a whole before the the tax is due for the two periods mentioned in the video.
For options trading, unfortunately, we haven't gotten 100% clarity on how this is taxed as there is limited information at the moment. Sorry that this probably doesn't help but might be worth checking with a tax expert if you know one. If you do find an answer, please let us know!
RTSO is for unapproved share options, which usually relates to employees buying shares from their companies at a discounted rate. I believe the 42% is an old figure for that, it is dependent on your income bracket. More info can be found here: www.taxassist.ie/resources/questions-and-answers/relevant-tax-on-a-share-option
Hope this helps!
- Cian
Is registering for ROS only possible at certain times of the year? I don't see this option on my MyAccount.
Hi Lads forgot to ask you in my previous question, when calculating CGT can you also deduct the fees you pay for buying and selling cryto before you apply the 33%. Thanks David.
No worries! So our understanding is that you can add your purchase trading fee to your cost basis (thereby reducing your tax liability marginally) but I'm not 100% on whether you can also include the selling fee. I think its usually only costs directly associated with the *acquisition* of the shares/crypto, but not with the selling - however I'll need to do some digging myself!
Let us know if you hear anything from revenue on it will you? Cheers and thanks for the question.
- Ste
@@TheLearningsReport Will do thanks Ste for the info
Great video thanks. If you recieve crypto rewards for staking (such as ADA), do you have to pay CGT on this every year or is it income tax? Do you have to pay tax if you leave it as crypto or only if you then dispose of it? Thanks
Hey Liam - Sorry for the delay in getting back to you on this.
In short, the answer is - it's hard to know. Revenue don't have direct guidelines on it, and I've been in touch with them to try and get clarification. We can get some sort of guidance by looking at how the US has approached it, but even they are still getting to grips with it.
I could summarise the reference pieces I've done a bit of research on, but I'll leave them below for you to check out yourself. Your guess is as good as ours at the moment!
doylekeaney.ie/news/crypto-assets-high-level-irish-tax-considerations/
coinpanda.io/blog/cryptocurrency-staking-taxes/
We're hoping to do a full video on this as soon as we have a clearer picture from an Irish standpoint!
Cheers for watching
- Ste
Cheers for the video.
What do ye know about avoiding CGT by moving to Portugal?
And cheers for the comment 👍 Per your question - that's a first for us, can't say we've any knowledge of it. Assumably unless you're a tax resident in Portugal, you'd need to pay CGT wherever you're domiciled, which would be Ireland assumably?
You're resident in Ireland for tax purposes if you're in the country for either:
- 183 days or more in a tax year
- or 280 days or more in a tax year plus the previous tax year taken together, with a minimum of 30 days in each year.
Not sure what the rules are for Portugal, but I would guess that if you spend enough time in the country you then qualify for tax there instead of Ireland.
There would also be the nitty gritty stuff of where you bought the shares initially - so I don't think it'd be as simple as "move to Portugal 6 months before you sell your shares in order to avoid CGT" 😂I would guess the CGT exemption would only be for shares purchased while a tax resident within Portugal. However, this is speculation on my part - I don't know the actual answer.
Curious to hear what info you have on it already though? Could be tempted by a move to Portugal 😏
@@TheLearningsReport As far as I've heard so far. It's as simple as moving to Portugal for 6 months and setting up a bank account and have a 12 month rental lease or purchase a property.
I've gained some serious % in the crypto space and I rather not pay 33% (I took the risk, can't understand why Revenue want a share).
I could be wrong on this with some minor details but that's what I've understood of it.
Nice, yeah, crypto markets have been a bit nuts recently! Always painful having to consider the tax liability - but a move to Portugal sounds pretty nice regardless, whether its for taxes or otherwise 😂Sadly, tax is a necessary evil. Indeed, you did take the risk with your crypto, but Irish taxes pay for many of the great things our country offers outside of the investing space (hospitals, roads, schools, parks, trains - etc.) so although we absolutely agree that 33% is a difficult pill to swallow, there are trade offs.
Hey guys, great video! Very helpful. So, from what I understood, the €1,270 is calculated on top of all your gains, correct? However, if I swing trade and do, let's say, over 500 trades in a year, do I need to file each individual trade, or can I just add all the profit in one file?
Also, if my profit was less than €1,270 in 2020, I would just need to file the CGT this October?
Thank you, guys!
Hey Gabriel, thanks for watching! Correct - the exemption is for all allowable CGT gains - so that would span across stocks, crypto and anything else taxed under the CGT rate.
If your trading is subject to CGT (which it likely is, but in certain cases it can be argued to be income if it's your main source of earnings), then you would need to figure out your own CGT liability. If you're trading often, you may want to use some sort of tax software to figure out your tax liability, given the number of trades you made in the year. Certain allowable losses could be offset against your gains, but that depends on when you sold the shares, how many you sold, first in first out rules, etc.
But to your question, once you have established what that taxable figure is (that'll be the tricky part) then you simply file one return based on your calculations.
For filing, correct, you would need to file by the end of October 2021 for your sales in 2020!
Hey gents. Great video many thanks. Quick question. Is CGT still 33% on US shares?
Hey Rozza,
Thanks for watching!
Yes, still 33% on US shares. 👍
Cian
Amazing video lads, very well made. Just a few questions.
1) Do I have to pay CGT on withdrawal of the money into my account?
2) I am under 18 and i am greatly interested in starting to invest (of course under parents permission.) Can i withdraw the money into my revolut junior account and also pay the tax or would i have to withdraw it into a parents bank account and then pay the tax via their card?
Cheers Denis.
1) Once a sale is made, a taxable event has occurred. So it doesn't matter if the proceeds of the sale stay in your bank account, in your brokerage account, or anywhere else for that matter! From revenue's standpoint, its up to you to declare that sale to revenue when it comes to tax season, and pay the tax due.
2) Good for you wanting to get started early! The only issue might be finding a broker that will allow you to trade under 18? I guess there's nothing stopping you opening it under your parent's name, but that might lead to some logistical headaches down the road.
Tha tax itself wouldn't be paid through Revolut either way. It would just be paid via Revenue's website - so you can use whatever card you like to pay the tax. In terms of withdrawing the funds, are you referring to the funds you will have invested? Im a little confused about that list bit.
- Ste
Hi Guys, thanks for the video! Very helpful.
I have a question: Capital gain is part of trading income (for the revenue?).
Thanks for your reply :)
Sorry for the late response - big summer off!
'Trading revenue' is usually revenue generated from operating a business. So in this case, I would say no, I don't believe you would include your capital gains as trading revenue. (if its from trading stocks or crypto, that is)
Excellent video! Fair play ! I have 2 questions, I would really appreciate if you could help me. The first : I had a loss this year beside i am not selling any of my stocks in the next few months or even years.. can I apply that loss in few years time when I sell my stocks? The second question: I bought apple and I'm not planning to sell in at least 5 years.. should I do the bed and breakfast tactic or just leave it the way it is and when one day I sell it I apply the tax gains? Thank u so much, cheers. Love your channel ! 👏
Cheers Jaime, appreciate it - couple of great questions here:
Q1. So to clarify, you did sell something this year at a loss, but you didn't sell any stocks that made a gain? If so, then yes, you can carry your losses forward to a future tax year and then offset them against your CGT bill whenever you do sell something for a profit.
Q2. If you're coming towards the end of the year and it doesn't look like you'll be using your exemption (because you're simply holding your stocks) then yes, you can sell the equivalent of the €1270, or that approx value (obviously it'll be tricky to match it exactly), and then simply repurchase the shares. We'll be doing a video very soon on Bed & Breakfast sales (and the math behind it), but essentially, by 'harvesting' your gains to avail of your exemption, you'll end up with more profit down the line when you 'actually' want to sell your shares.
Hope this makes sense!
- Ste
Fair play Ste ! Fair play .. very well explained, thank you so much for your time answering my questions. Your channel is fabulous and I already recommended to some friends. All the best !
how much do you pay if you make a capital gain with government bond?
According to the revenue PDF you have attached to your video description people employed and working in Ireland should file Form 12, could you please confirm the differences between form 12 and form CG1?
Thank you
Hi Richard, we have videos on all three tax forms relevant to most Irish investors/employees. Form 11, Form 12, and CG1 form. They're all linked below for:
Form 12: th-cam.com/video/x4QVvH8DjM4/w-d-xo.html
Form 11: th-cam.com/video/15fgO8-8o6g/w-d-xo.html
CG1 Form: th-cam.com/video/YorwaTXEPYI/w-d-xo.html
- Ste
Great video lads, can you clarify something. Some tokens like Safemoon give holders reflection tokens for holding their token in your wallet. These additional tokens built up in the same wallet.Are they considered income or CGT? Would they fall under similar rules of airdrops/skating when received are income and then when you sell CGT? Cheers 👍
Nice one, Anthony - thanks for the question. By the sounds of it, yeah I’d also look at those through the same lense as staking, airdrops etc. But again, thats assuming that our assumption re: staking taxes is correct (which it may not be!)
So in summary, I would agree with your view on it. The value of token when you receive them is your “income taxable event” and then when you sell down the line, cgt (unfortunately)
- Ste
thanks,great information.i'm curious as to the personal side and the company side of taxes.
say you have a business in both Ireland and Batumi, Georgia.would you be required to pay any Irish Taxes on any income you or your company makes in Georgia(country,not the USA) as in Georgia the taxes are territorial and anything made outside of that isn't taxed
Heya - so this is a bit of a niche one, but my understanding is that it 1) depends on your residency status for Ireland (in terms of taxes) and then additionally, 2) how much of the income earned in Georgia is repatriated to Ireland. You might the document below helpful to have a read through!
www2.deloitte.com/content/dam/Deloitte/ie/Documents/Tax/ie-tax-ges-moving-to-ireland-tax-guide.pdf
please if I buy a house by money of selling another house, do I need to pay CTG?
What if you buy and hold shares never selling and then move out of Ireland? Will they tax you on exit like Denmark and california? Great video lads
Hey Andreas - sorry for the late reply on this one.
Once you leave Ireland, you are still a 'ordinarily' resident for tax purposes for a period of time, is how we understand it. According to revenue, this period of time is 3 years. (link for reference below)
www.revenue.ie/en/jobs-and-pensions/tax-residence/how-to-know-if-you-are-ordinarily-resident-for-tax-purposes.aspx
After this time, to the best of our knowledge, you will be no longer eligible to pay Irish tax on your holdings, and instead will pay it in your new tax residence.
Very informative video! I have a question. I'm a non-domiciled but a tax resident in ireland under PAYE. I have investments in etoro. How true is it that I'm not liable for taxes as long as I don't remit the gains to ireland? I would appreciate if you could enlighten. More power to your channel 😀
Cheers Arn. In short, there are so many ifs and buts to these sort of questions that we're always hesitant to try give a response.
My understanding is that if you're an Irish tax resident, you're going to be liable for disposals from your sale of shares while a tax resident here - unless your country of domicile has a double taxation treaty with Ireland, whereby you may only be eligible to pay there.
The 3 year rule you're referring to, I believe, is when you've LEFT Ireland, but are have been a tax resident in Ireland and continue being one for the 3 years following your departure.
Again, when it gets to people's specific situations - just pay the €50-€100 quid for a tax advisor to get an informed response!
Couple of resources below for you to mull over:
www.revenue.ie/en/jobs-and-pensions/tax-residence/how-to-know-if-you-are-ordinarily-resident-for-tax-purposes.aspx
mrsmoneyhacker.com/tax-loopholes-for-irish-investors/
taxsummaries.pwc.com/ireland/individual/income-determination
Obrigado!
De nada!
Great video lads, could you also do a video of stuff we can do to have tax reduced i.e. more investments or something
Hey Matej - Appreciate it and thanks for watching. Sure we can! I'm curious though, when you say 'more investments' what are you referring to exactly? Do you mean alternative investments as opposed to just stocks?
Regardless, we have a video in the pipeline for how to reduce your tax liability in Ireland - so stay tuned for it 👌As mentioned, bed & breakfast sales are a good place to start, and of course, in certain cases, pension funds are also a very tax efficient way to avoid some of the CGT pains.
@@TheLearningsReport by investments, would crypto be included aswell,cant do bed and breakfast unfortunately
@@matejdujmovic9327 Just in case it wasn't clear, you can use the 'bed & breakfast sale' strategy for your crypto also. The €1,270 exemption is across your CGT gains in general, and not solely for stocks.
Unfortunately, €1,270 is the TOTAL exemption, so you would need to balance you sales between cyrpto and stocks. If the total gains between your stocks and crypto together exceed the €1,270, you will owe tax on anything over that amount at 33%.
But hypothetically, you could sell €1,000 euros worth of crypto, €270 worth of stocks, and rebuy them straight away without exceeding the €1,270 limit.
@@TheLearningsReport but I can use that only once a year? Or can I use it multiple times a year? What I didnt get, is the 1270 like your allowance for a year or for every sale that you make?
@@matejdujmovic9327 it is an annual amount. So, €1,270 total but this can be used across multiple sales but only €1,270 for the year.
hi if you are a married couple and are filing jointly can we claim double the amount for CGT exemptions
I see that Forex spot trading is exempt from CGT due to it being considered betting. However, trading Forex CDF's through platform/broker is NOT considered betting and therefore is liable to CGT of 33%. Is this correct? Thank you.
Great video lads... i have a question Can i trade stocks while being on stamp 3.
Hey Saleh, appreciate it and thanks for the comment. Wish I could be of more help, but in short, the answer is I don't know. My guess (and again, its very much a guess) is that it will come down to what documents you have, your ID, and what other documents are required when setting up your brokerage account.
Alternatively, if possible, you could potentially try open the account under your 'current' nationality/residency?
Again, this is definitely beyond my area of knowledge - sorry I can't be of more use! Curious to hear how you get on though. - Ste
@@TheLearningsReport thank you so much for ur honest response.. iam working on it lets see how it goes..
@@salehnawaz7233 No worries & best of luck!
Thanks for the great information, can u please Tel me how can we prouve crypto losts to the revenue, because when we loose assets on an exchange platform we don't get any receipt about that. Thanks
Hey Ibra - if you export your transaction history on whatever exchange you use, you should be able to see your gains and losses within that. Additionally, you could use a crypto tax software provider to do the legwork for you! Check out Koinly, Coinpanda, etc. if interested.
- Ste
How do you calculate CGT when you investment is in USD? Do you need to add up all your deposits from your bank and minus what the platform says in dollars after converting it into euro to find your expense? I use etoro which deals in USD.
Hi Marcus - you calculate the conversion at the time of the sale. You can look at the date of your transaction, and what the USD-EUR rate was for the day in question. Link below is for a currency converter I use. You can plug in the applicable dates, and multiply the sold amount with the exchange rate on that day. That'll give you the Euro amount you need to calculate your liability 👍
www.xe.com/currencytables/?from=USD
- Ste
Great video guys! This really helps a lot! I have one question however. I invest in cryptocurrency but mainly for mining crypto. I’m a little confused on how to go about paying taxes on that? Currently, all cryptos I mined are still sitting on my wallet (Revolut). If I withdraw them, will they be subject to CGT or income tax? Thanks!
Do you have to pay the tax if I reinvest the money. I want to look in to making a investment portfolio as a road to early retirement. Thanks for the great video.
Hi Karol,
Yes unfortunately the tax is still due as soon as you 'sell' (even if you only sell for 30 seconds, and reinvest the earnings!).
However, you can make use of your €1270 annual exemption by selling some of your holdings towards the end of the tax year, harvesting the gain, and then reinvesting those funds. Any gain under that amount is tax free - so thats one way that you can avoid at least some of the taxes! This method is sometimes referred to as a 'Bed & Breakfast Sale' (video linked below)
th-cam.com/video/EKGYfRHTGKo/w-d-xo.html
- Ste
Thank you for this brilliant explanation guys. Very helpful!
I just have a small question, if I avail of my 1270€ bed&breakfast (or might even only sell those 1270€ and not re-purchasing it) do I still need to go online on revenue and pay “0€” of tax and then file this ?
Hey Diego,
Thanks for watching and appreciate the kind words!
You would still need to file the gain with a CG1 form by 31 October in the year after you sell but you don't need to pay.
We have a video which runs through this form which you can check out here:
th-cam.com/video/YorwaTXEPYI/w-d-xo.html
And more details on the Bed & Breakfast Sale:
th-cam.com/video/EKGYfRHTGKo/w-d-xo.html
- Cian
@marinagonc02 Hey Marina - When you say 'income tax return', are you filing a form 12 or form 11?
Hey guys are stocks like tesla that are bought in us dollar taxed thr same?
Hey Andy - Yep, nearly all the stocks I own are priced in USD (as they're listed on US exchanges) and the CGT is the same regardless i.e 33%. When it comes to calculating the taxes, you would take the exchange rate of USD-EUR on the day you sold the shares, to establish what the EUR amount was, and then calculate the 33% tax on that.
- Ste
Great video guys 😁
What about scenario like this? I buy my crypto using Euro then have a gain so decide to sell some or everything but not to euro but to stable coin like USDC, USDT etc. Do I still need pay tax and file CGT?
For example in Poland you don't pay any tax until you change your gains into Fiat money.
Hey Lucas - glad you enjoyed! So unfortunately, yes, the key word in this scenario is "sell some". The act of selling/swapping/converting from a crypto to a stable coin is still considered a sale for tax purposes (I'm surprised that's not the case in Poland, sounds like an extremely big loophole 😂). If everyone could just swap crypto to a stable coin and then cash out, no one would pay an ounce of tax ever!
Hope this helps.
- Ste
@@TheLearningsReport Thanks for swift reply. As someone mention in previous comments I think Irish gov is ripping us off. If you sell your crypto and buy more then you just build up your portfolio. If you cash out then you should pay tax.
I am in retail business so I am selling my products during the year and buy more using my profits. At the end of the year we buy even more to avoid paying huge tax. So we don't have cash (crypto) we have products on our shelves (USDT).
I hope it make sense 😁
No worries. I see what you're getting at, but it's a little different when you're talking from a business supplying products/inventory standpoint, and personal investment portfolio. I guess the argument from an economic/revenue standpoint is that you're supplying a tangible product/service to customers when it comes to your retail business (and benefit from tax breaks as a result), whereas with crypto its solely to build your personal wealth!
Is Trading Forex considered gambling in Ireland or would profits from day trading be subject to CGT too?