⚠️ *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 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
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.
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
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!)
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.
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
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 ?
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!
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
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) - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YorwaTXEPYI.html Form 12 (Income tax Return) - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-x4QVvH8DjM4.html
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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YorwaTXEPYI.html - Cian
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
Exactly! So for sales in 2021, you pay by Dec 15th (today!) if you’re above the 1270 exemption. If below, you don’t need to do anything this year, but will file next year 👍🏻 - 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!
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
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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HZ1StqSfEaE.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
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.
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?
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.
Hey just a quick question for you guys. If I have money invested in stocks or crypto but I haven't sold any of my shares, I.e. I bought a stock and held onto it, would I still have to pay CGT or would this only apply after I have sold it?
Hey - yea only when you sell! So if you simply buy and hold, you won't have any tax issues to worry about (unless the stocks happen to pay a dividend, for example) But generally speaking, yes, no CGT is due until you actually sell your holdings. - Ste
Great video, thanks So if I am just buyin cryptocurrency this year for example, and I am not thinking to sell it before 3 or 4 years, - I don't have to fill any form for now or for any years I haven't made a sell in it. Only when I am thinking to sell? - And if I did then I should fill CG1 befor 15 Dec of the same year of selling? Nothing for the years between? Is that correct? Thanks again
Hey Alaa - thanks for watching! Q1 - Yes, you won't need to file or pay anything until you sell. The exception is if you stake this crypto that you're holding. In this case, you would likely receive payments/rewards for holding it, and this is taxable (but would likely be taxed as income, and thus, would be filed as income under your income tax return/form 12). Check out our video on crypto staking for more info! Q2 - If you're only declaring a capital gain/loss, then yes, it would be a CG1 form. But it wouldn't be in the year that you sell, you would file it the following year. So, lets say for example you: - Sell crypto in 2024... - You would, PAY the tax by Dec 15th of 2024 - FILE the CG1 form by Oct 31st of 2025 If you don't sell anything in the years you're holding, then you shouldn't be liable for tax/filing. 👍 - 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
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
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
Born and lived in Ireland for 23 years , lining in the US for past 40 years . In 2002 I purchesed just under 3 acres with house and sveral out buildings for 100K. Spent about 50K fixing up the property but never finished . I am Selling the property now, do I pay the CGT in Ireland If I use all the proceeds of the sale to purchase and appartment in Ireland . In the US this is called a 1031 Exchange
Hey Christy - as far as I'm aware, we don't have an equivalent to what you describe here in Ireland. The only relief that I'm aware of when selling a property is the PPR (principal primary residence relief) which I imagine you're already familiar with, but I also imagine is not applicable to you given that you're in the US (or at least, I suspect the property you're referring to is Ireland based, while you're US based? I don't think you specify where the property in question is). My understanding would be that you pay the 33% CGT on whatever profit you make, and then the balance is what you can then use to purchase the apartment. www.revenue.ie/en/gains-gifts-and-inheritance/cgt-reliefs/principal-private-residence-ppr-relief.aspx
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!
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
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
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
Register for ROS isn’t showing up for me. I tried registering by different means but when it asked for information which they said should include my PPS number, it wouldn’t accept it. I’m confused.
Hey Gilgamesh. First of all (just to clarify) since we released this video - revenue have made it easier to pay CGT without needing to create a ROS account, unless you fall under the 'chargeable individual' category (i.e. you have €5,000 or more in NON-PAYE income to declare). So you may not need to create a ROS account unless this applies to you. Instead, you can simply scroll down to the 'Make a Payment' button listed under 'Payments/Repayments', choose 'tax', then 'capital gains tax. If you do still need to create a ROS account and it's not visible, you'll most likely need to drop revenue a quick message via 'My Enquiries', tell them you'd like to register for ROS, and they should be able to activate the link for you. Hope this helps! - Ste
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!
Cheers for the video lads. Quick question (probably a stupid one but I'm new to this stuff!) - There doesn't seem to be any step where I show proof of a gain made or am I missing something? It seems you just work it all out yourself and then pay CGT as if you're buying tickets to a gig haha. Am I way off the mark here lads or what? Thanks again for the content, definitely picked up a few nuggets!
Hey Greg - No worries at all, thanks for the comment and glad you got some value from the vid! So yep you're correct, we don't really show that in the video. When paying your CGT (part 1 of the process) you simply are entering in a figure into a box, and clicking pay! When you go to FILE your return the following year using the CG1 form (part 2 of the process), that's when you give more details on your gains/losses. That being said, as it's self assessment, you don't actually need to submit as much detail as you might expect. If you get called for an audit, however, that's when they'll be looking for a full trade by trade breakdown!
Hey Ripblade, If your gain is below the threshold, you do not need to pay but should still file your gain so there is a record on Revenue for it. - Cian
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) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EKGYfRHTGKo.html - 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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EKGYfRHTGKo.html - 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 👌 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-InfLTMTllg4.html
Hey Mahmoud, In short, according to Revenue you don't have to but be sure to check with your tax adviser on your individual situation. As it relates to income (i.e. dividends) and from Revenue's website (www.revenue.ie/en/jobs-and-pensions/tax-residence/index.aspx): "If you are neither tax resident nor domiciled in Ireland for tax purposes, you are chargeable to tax in Ireland on: Irish-source income, including income from an Irish public office foreign employment income where the duties of the employment are carried out in Ireland." And as it relates to CGT (www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/index.aspx): "If you are non-resident in Ireland, you pay CGT on gains on the disposal of: land, buildings and minerals in Ireland exploration or exploitation rights in the Irish continental shelf unquoted shares deriving the greater part of their value from: -land, buildings or minerals in Ireland -exploitation rights in the Irish continental shelf -assets which are used for the purpose of a trade carried on in Ireland." You may owe CGT in your country of residence or domicile so make sure to check that out. - Cian
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!
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
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
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
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 :)
@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?
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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YorwaTXEPYI.html - Cian
Unfortunately, at time of writing, that seems to be the case yes! It's a fast moving space, though, so will be interesting to see how things materialise. - Ste
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
Howiya Conor - So in short, no, you can't. Just pay your 33% 😂 But for your reference, this page gives a pretty good outline of what you're asking: practicenet.ie/practicenet/tax-summary-corporation-tax.php#:~:text=Companies%20pay%20Corporation%20Tax.,with%20Capital%20Gains%20Tax%20rules.
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
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 !
Hey Niamh, Thanks for the question. It would depend on what purpose the gas fees were incurred for. Revenue states: " What are ‘allowable expenses’? They are costs that you can deduct from the sale price to work out your chargeable gain. These can be: -any money spent by you which adds value to the asset (known as ‘enhancement expenditure’) -costs (for example, fees paid by you to a solicitor or auctioneer) when you acquired and disposed of the asset" Why were the fees incurred - purchasing the ETH? Selling? You can also raise an enquiry on MyEnquiries to confirm with them too. Guide on ETH gas fees here: cryptotrader.tax/blog/ethereum-gas-fees Revenue guidance on allowable expenses: www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/how-to-calculate-cgt.aspx - Cian
Thanks guys. I received a small dividend from shares I hold. Seems like this isn't a CGT payment for me, what tax do I pay on this? Where do I find the form on revenue?
Hey Alan - Form 12 (Income Tax Return) is what you'd need to fill out. We have a video on it which I've linked below! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-x4QVvH8DjM4.html
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
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
It wasn't for us either initially - we needed to drop revenue a message via my enquiries in order for them to activate it (again, in hindsight - we should've mentioned this in the video but forgot to!)
Really good video, very well made. I have a few questions: (1) If I have €4000 in a stocks account for example and it is split across like 4 stocks, and each of those stocks makes a €1000 gain does that mean I don’t have to pay any CGT since they are all under the exemption? Or does it mean I made €4000 overall so I take €1270 from that and charge 33% of €2730 for tax due? Basically I’m asking do you calculate individually for each stock (with an exemption for each stock so 4 exemptions) or is it on the overall money you put in? (one exemption) (2) If I don’t have to pay any tax in that case because of the exemptions are counted individually not overall, does that not mean I can just sell my stocks and re-buy in once it gets to €1200 gain for each stock, to reset the exemption?So I basically would not have to pay tax ever as long as I continue to reset it (sell it and buy back in) before the individual stock gets over €1270 gain? (3) This kind of ties into my previous question. When does the exemption restart? So like is it any time you buy into a stock the exemption starts? And does it reset if you just sell the stock and immediately re-buy it? Basically I’m a bit confused on how the exemption works. (4) Can I avoid tax by sending gains to my revolut through my revolut card and keeping it there and bypassing my bank account? For example I’ve made a bit of money off Dogecoin and I want to know if I can avoid tax by withdrawing it from Binance through my revolut card. And then once it gets to my revolut I keep it there and spend it with my revolut debit card.
Thank you - glad it helped! So lets take each question one by one: 1) You're latter point is correct - one exemption, total. You calculate your total gain, subtract the €1,270, and the remainder is your chargeable amount i.e. what you calculate your 33% CGT on. 2) So as mentioned, no, this wouldn't apply as the exemption is a total of €1,270 3) The exemption is for the tax year, so if you sell a stock (for example) between Jan 1, 2021 and Dec 31 2021, you can use your €1,270 exemption (for that year). If you don't use it, you cannot carry it over. 4) No, that would be tax fraud I'm afraid. If you sell a stock or crypto, you're liable for CGT - it doesn't matter where you keep the funds Hope this helps!
How do you calculate CGT if you bought crypto at different prices and then sell part of it. For example: Bought 0.6 BTC for €10000 Bought 0.2 BTC for €3000 Holding total 0.8BTC Sold 0.3BTC for €7000 How do you calculate CGT? Thanks 🙏
Hey Michael - the short answer would be to use a Crypto tax software like Koinly as this will take a lot of the headache out of it :) koinly.io/?via=7C9CF056 To do it manually (and if you're in Ireland) we use the FIFO method, which is short for 'first in, first out'. So from a tax standpoint, when you go to sell 'some' of an asset that you hold, you essentially sell your 'oldest' holdings first. So in your example, if you're selling 0.3BTC, your cost basis would be €10,000 given that your first purchase of 0.6 BTC is the pool of funds that this sale would be 'taxed' from. To further the example, if instead you wanted to sell 0.7 BTC, 0.6 BTC would be taxed at a cost basis of €10,000 0.1 BTC would be taxed at a cost basis of €3,000 Hope this helps. - Ste
Hi Cian - if you see our pinned comment with 'important update' you'll see that you no longer need to register for ROS to pay your CGT. You can simply make a payment through your MyAccount page on revenue.ie. Check out our video on CG1 form for more info 👍 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YorwaTXEPYI.html
Do you pay the gain each time you sell shares? I'm currently trying out day trading and making between 4 and 5 trades a week. Getting 1.38 to 1.9 % return each day. Some losses also. When I accumulated my target I will cash out. How do I present or pay my capital gains?
Hi James, You pay by Dec 15th in the year you realise the gains. So you will need to figure out your gains/losses on each trade you made (your broker should have a functionality to export this info). Then you’ll need to calculate your 33% liability based on that info. - Ste
Hey yes, it's the full 12 months. So for example, people who are submitting their return this year are FILING for last year (Jan-Dec 2020). You pay in the year you sell, you file the following year. - Ste
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
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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-x4QVvH8DjM4.html Form 11: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-15fgO8-8o6g.html CG1 Form: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-YorwaTXEPYI.html - Ste
