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Overview of taxes on financial transactions within the EU - Ireland 

An overview of Ireland, one of nine EU Member States considered to apply a tax on financial transactions.

Status

In force

Introduced

Before the formation of the State in 1937

Legislative reference

Sections 2, 88 and 90 and Schedule 1 of the Stamp Duties Consolidation Act 1999.

Type of tax

Stamp duty

In scope instruments

Instruments for transfer or conveyance on sale of Irish property. In practice, this means that the duty mainly applies to transfers of shares in Irish companies and derivative financial instruments that relate to shares in Irish companies.


Securities issued by any government or by the European Union and interests in a collective investment undertaking are exempt.

Taxable event (transaction)

Execution of an in-scope instrument.

Territorial connection for liability – condition for taxability is:

Residence of issuer?

The transfer of shares in an Irish incorporated company is always likely to be in scope.


Location of transaction (e.g. traded on local stock exchange)?

Instrument (s) executed in Ireland are within scope. Instrument(s) requiring action to be taken in Ireland to finalize the transfer– for instance: updating of the Irish company's share register, could also be in scope.


Location of party (e.g. at least one party to the transaction is resident)?

In practice, if there is an Irish party to the instrument, the instrument is executed in Ireland and thereby in scope.


Financial intermediary is resident?

See above

Other relevant conditions for taxability

N/A

Exempt transactions

  • exchange of shares as part of business reorganization – certain conditions apply
  • transfers not effected by means of a legal document.

Person responsible for collecting/remitting tax

Self-assessment. The transferee is liable to pay the tax to the Irish Revenue Commissioners.

Liable persons

The transferee

Person who in practice bears the tax

The transferee

How enforced

Self-assessment. The transferee is liable to pay the tax to the Irish Revenue Commissioners.

Penalties in case of failure to file/pay

Interest on underpaid stamp duty is calculated at a daily rate of 0.0274 percent. Severe penalties apply to breaches of the stamp duty regulations, including the undervaluation of transferred assets.

Tax base

The higher of the consideration paid for the transfer or the market value of the financial instrument(s).

Tax rate(s)

One percent for stocks or marketable securities but possibly up to 6 percent (the rate varies with the nature of the transferred instrument(s).

Cap/Floor/Threshold/Allowance

N/A

Other comments

N/A


Sharon Burke

KPMG in Ireland

+353 1 410 1196

Grace Brennan

KPMG in Ireland

+353 1 700 4289

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EU Financial Transaction Tax draft directive

Text from the original EU financial transaction tax draft directive that has been adapted to include related referenced content.

KPMG EU Tax Centre

EU direct tax practice
KPMG member firms have set up an EU Tax Centre to help you understand the implications of EU tax law and how it can help your business.