Investment Income Treatment Investment income is categorised differently from trade income. Investment income must be removed from the accounts when computing trading income. As with other categories of income, there are special rules regarding the computation of tax on investment income. Generally, there are very limited write-offs and deductions against gross income. In many cases, tax is withheld at the source. Losses from investment income […]
EIIS Company The company must be a qualifying new venture not less than two years. It must not have taken over an existing trade. Formerly for EIIS it was required that Revenue’s issued a statement of qualification to the qualifying investors or the designated fund to confirm that the company was a qualifying company and that the investment was a qualifying investment. The Finance Act […]
Start-up relief for entrepreneurs (SURE) The broad principles are similar to those in respect of EIIS. The investment is made by a person who works in the company for at least 12 months. Relief for the investment is made against total income in the year of investment. The individual may elect to have the relief deducted from total income in any of the previous six […]
Investment Schemes The tax incentives for investment in new business ventures was amended substantially in 2018. The new scheme was to apply until 31 December 2021. The employment and investment incentives scheme and start-up relief for entrepreneurs (SURE) have some common features although they are aimed at different investors. EIIS allows relief for third-party investors. Sure allows relief for investors who are the principal or […]
Pan-European Personal Pension Product Finance Act 2022 introduced a new Chapter 2D into Part 30 of the TCA 1997 that provides the taxation and relief rules for the pan-European Personal Pension Product (PEPP) which has been introduced as required under Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019. A PEPP is a contract-based product between an individual and […]
Finance Act 2011 The Finance Act 2011 introduced significant changes to approved retirement funds and pensions. The approved retirement option was extended to all defined contribution pension schemes. It is also available to defined contribution occupational schemes who avail of the deferred annuity purchase initiative announced in 2008. Where the ARF option is availed of, the tax-free retirement lump sum may not exceed 25% of […]
Funds Investment funds are usually understood to refer to vehicles owned collectively in which each unit holder has a portion of the net assets represented by those units. Most funds are closed in that purchases and redemptions increase or decrease the capital or total pool. Certain funds are subject to EU harmonisation rules which make recognition of them in other EU jurisdictions clear in these […]
Investment Income Treatment Investment income is categorised differently from trade income. Investment income must be removed from the accounts when computing trading income. As with other categories of income, there are special rules regarding the computation of tax on investment income. Generally, there are very limited write-offs and deductions against gross income. In many cases, tax is withheld at the source. Losses from investment income […]
Dividend Income A dividend is usually declared by the directors and confirmed by the shareholders. Under companies law, it may only be declared out of earned profits. It is not deductible for tax as it is a distribution of profit out of the company to the shareholders. Generally companies must withhold dividend withholding tax on dividends paid at the rate of 25%. A return of […]