Revenue has updated its Tax and Duty Manual on the taxation of Exchange Traded Funds (“ETFs”). Revenue has confirmed the position regarding the 8 year “deemed” disposal rule for offshore ETFs deemed equivalent to an Irish ETF.
Prior guidance confirmed that ETFs domiciled in the USA, the EEA, or in an OECD member state with which Ireland has a double taxation treaty were treated in the same way as share investments. That confirmation does not apply to such investments with effect from 1 January 2022. Where following an analysis of an ETF that was covered by previous guidance, such investments are deemed equivalent to an Irish ETF, such investments will be subject to the 8 year “deemed” disposal rule. The actual acquisition cost will remain unchanged, with the 8-year window commencing on 1 January 2022. Therefore, the earliest “deemed” disposal for such investments will be in 2030.
In addition, Revenue has updated the following manuals to clarify the appropriate tax treatment for the following:
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