The Irish Revenue issued an eBrief 098/20 on 2 June 2020 which provides an update on the current position for non-resident ARF holders. In practice there is no material change to the position which has applied since the 22nd December 2017 although further clarity has been provided. The main points are:
There are several different scenarios that arise:
There is an ARF Article in DTT.
Ireland retains the taxing rights. No repayment of Irish tax.
There is a Capital Article in DTT.
The State of residence has taxing rights on the full distribution. Repayment of Irish tax deducted can be claimed. Very few DTTs contain a capital article.
There is no Capital Article in DTT.
Repayment of Irish tax can be claimed but only to the extent that the distribution is from “income & gains”.
Key considerations for ARF holders:
If you or your clients are non resident and in receipt of ARF income contact us on 01 237 5500 or at firstname.lastname@example.org to discuss how these changes will impact you. A self administered ARF may offer you more control over the type of investment return you receive from your investments, and may offer an opportunity to plan your distribution more tax efficiently.
If you set up an Approved Retirement Fund or an Approved Minimum Retirement Fund you may lose some or all of the money you set aside for retirement. The value of your investment may go down as well as up. The income you receive may go down as well as up. Unless the remaining capital grows at a rate at least equal to the rate of regular withdrawals, the investor’s capital will be reduced and could eventually be exhausted.
This marketing material is not intended to provide advice and is provided for general information purposes only.
The legislative information contained herein is based on Harvest’s understanding of current practice as at June 2020 and may be subject to change in the future.