Offshore Investment Funds – Information on the tax obligations
To help you to fully understand your tax obligations in buying units in a KBC Offshore Investment Fund, we recommend you contact a professional independent tax advisor to discuss your personal tax situation, and to ensure you are tax compliant. We do not offer tax advice and are unable to help you to determine what (if any) tax is due, nor can we assist you with filling-in tax forms. We can however provide you with some general explanatory information which we have included below.
- The transaction type ‘subscription’ means a buy transaction leading to you acquiring a number of units of a specific KBC Offshore Investment Fund.
- The transaction Type ‘redemption’ means a sell transaction leading to a reduction (full or partial) of your holdings in a specific KBC Offshore Investment Fund.
- ‘Gross Amount’ in the case of a subscription means the gross subscription amount, before entrances fees are deducted.
- ‘Units’ – means shares in an Investment Fund.
You have acquired a material interest in a regulated offshore fund in the EU/EEA/OECD (often referred to as an “equivalent fund”). KBC Offshore Investment Funds are located in Belgium and Luxembourg.
Buying units in a KBC Offshore Investment Fund with a lump sum and/or starting a monthly investment plan means you automatically fall into the ‘self-assessment’ tax category. This means you have to file a Form 11 income tax return and are subject to the tax payment rules including preliminary tax. All customers, even those who have previously only been subject to the PAYE system, must file a Form 11 income tax return
A Form 11 income tax return for a year must be filed by 31 October in the following year (e.g. tax return for year 20X1 must be filed by 31 October 20X2). You are required to disclose the following details in your Form 11 income tax return in respect of all units that you have bought in the year:
- Name and address of the offshore fund e.g. Sivek Global Low Fund, Belgium;
- Date interest in the offshore fund was acquired (i.e. date you bought units) ;
- Amount of capital invested in acquiring the offshore fund; and
- Name and address of intermediary through whom the material interest was acquired being KBC Bank Ireland plc, Sandwith Street, Dublin 2.
If you hold units in a KBC Offshore Investment Fund for 8 years, there is a deemed sale every 8 years and you will have tax obligations. Information on the 8 year deemed sale is included in a specific FAQ below.
Calculate if you have made a gain on the sale of all or part of your units. Information on how to do this calculation is included in a specific FAQ below.
If you have made a gain, you must declare this gain in your Form 11 income tax return and pay the tax on the value of the gain directly to Revenue.
A Form 11 income tax return must be submitted to Revenue on or before the 31st
of October, in the year after the year in which you sold and made a gain ( e.g. gains made in 20X1 are returned in your Form 11 income tax return which must be filed by 31 October 20X2).
The tax due is subject to preliminary tax rules.
You should complete the section “Offshore Funds (Part 27 Ch 4)” in Panel E, under the heading “Foreign Life Policies / Offshore Funds / Other Offshore Products”.
This section should be completed for the following transactions that occurred in the year in relation to your units in a KBC Offshore Investment Fund;
- All units that you bought,
- All gains arising on the actual sale of all, or part of your units,
- All gains arising on the deemed sale of units held every 8 years.
Preliminary tax is your estimate of the Income Tax, Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) that you expect to pay for a tax year. You must pay this by 31 October of the tax year in question. The amount of preliminary tax for a year must be equal to, or more than, the lowest amount of the following:
- 90% of the tax due on all income for that tax year, or
- 100% of the tax due on all income for the immediately previous tax year, or
- 105% of the tax due on all income for the tax year preceding the immediately previous tax year (often called the ‘pre-preceding year’). This option only applies where you pay by direct debit. It does not apply if the tax due for the pre-preceding year was nil.
For late payments, you will be charged interest for each day (or part of a day) past the deadline as set by the Revenue.
You must make sure that you do not under pay your preliminary tax, or you may be charged interest by the Revenue.
Details of the options available to pay preliminary tax are available on www.revenue.ie
This section applies to you if you have bought units and held them for 8 years. It will apply again in the future if you continue to hold your units for another 8 years i.e. on the 16th
anniversary of your initial purchase and so on every 8 years.
The tax law states that you are deemed to have sold your units on the 8th
anniversary of the date you bought the units. However you are NOT required to actually sell your units. Instead you are required to work out if a gain would arise if you were to hypothetically sell the units on the 8th
anniversary. If you have made a gain, you must declare this gain in your Form 11 income tax return and pay the tax on the value of the gain directly to Revenue.
The Form 11 income tax return must be submitted to Revenue on or before the 31st
of October, in the year after the year in which your 8th
anniversary occurred ( e.g. gains in 20X1 are returned in your Form 11 income tax return which must be filed by 31 October 20X2). The tax due is subject to preliminary tax rules.
The tax paid is effectively a payment on account with Revenue. It is available for credit against the tax due when the units are ultimately sold. It is important that you remember the tax already paid when calculating the tax liability owed to Revenue when the units are ultimately sold.
If no gain arises, no tax will be due and there will be no action required on your part.
If you continue to hold your units for another 8 years, you would be required to complete the same process on the 16th
anniversary of your initial purchase and so on every 8 years.
To calculate if you made a gain, compare the proceeds from the sale to the cost of buying your units which is the gross amount invested. If the proceeds exceed the cost, then you have made a gain and tax is due on the value of the gain which you must pay directly to Revenue . You must declare this gain in your Form 11 income tax return. If the proceeds are less than the cost then you have made a loss and no tax is due and no action is required on your part. This loss cannot be used to offset a gain made on any other sale.
When you sell part of your units, the tax law states that you are deemed to sell your units based on the order you bought them in, meaning you sell your oldest units first and so on. This is called the “First In, First out”(FIFO) method.
To calculate if you have made a gain, you should first determine how many units you have sold. You then determine the amount you bought the units for (i.e. gross amount invested before entrance fees) and compare this to the proceeds of their sale to determine if a gain/(loss) arises.
If the proceeds exceed the cost, then you have made a gain and tax is due on the value of the gain which you must pay directly to Revenue . You must declare this gain in your Form 11 income tax return. If the proceeds are less than the cost then you have made a loss and no tax is due and no action is required on your part. This loss cannot be used to offset a gain made on any other sale.
The tax rate is 41%. This rate is set by Revenue and is subject to change.
This loss cannot be offset against any other gains or any other tax.
No, existing losses cannot be used to reduce any gain made on the sale of units in a KBC Offshore Investment Fund.
No, KBC are not allowed to deduct and pay tax liabilities to Revenue on behalf of our customers.
No, gains generated within the fund are not subject to Irish tax. The fund can grow tax free until the units are sold by you, or deemed to be sold every 8 years, whichever happens first.
In the event that a taxpayer fails to disclose or fails to correctly disclose details of gains from offshore investments, Revenue could impose penalties as allowed for by law.
In the event that a taxpayer fails to meet their preliminary tax obligations, Revenue could impose interest and penalties as allowed for by law.
When a customer buys or sells units in a KBC Offshore Investment Fund, KBC is required by law (Section 896 Taxes Consolidation Act 1997) to report certain details to the Revenue, one of which is your PPSN. In order for KBC to be compliant with current legislation, you must provide your PPSN to us so that we can then provide it to the Revenue.
When a customer buys or sells units in a KBC Offshore Investment Fund, KBC are required by law to report to the Revenue the following details (where relevant):
- Customer name
- The name of the KBC Offshore Investment Fund
- The date of purchase or date of sale of units
- The amount paid by or to the customer in respect of a purchase or sale of units.
See Revenue’s Tax & Duty Manual Part 27-04-01 available on www.revenue.ie
for further information in respect of the taxation of offshore funds.
Under Irish legislation it is the responsibility of each individual to ensure that they have filed a correct and complete Form 11 income tax return with the Revenue, and the obligation falls with the individual to calculate and pay on time the correct tax liability owed to the Revenue. KBC does not accept any responsibility for interest and penalties arising to the customer as a result of an incorrect or incomplete Form 11 income tax return being submitted to the Revenue, or, an incorrect or late payment of the tax due.
What is the minimum amount of investment in a KBC investment?
You can invest in KBC mutual funds from as little as €125 per month.
Can I use my card online?
Yes, you can make online purchases/payments anywhere you see the MasterCard logo. When you use your card online, you may be asked to go through the MasterCard Secure process and a onetime password will be sent to your phone.
You can report a card lost or stolen and order a replacement card through the KBC app by simply tapping the card image and selecting the Lost/Stolen button.
Your replacement card will be available to use immediately in your digital wallet, or you can load the card to your digital wallet if you have not already done so.
You can also phone our 24 hour helpline on 1800 936 287 or 353 1 634 79 63
What are KBC Investment fees & charges?
All KBC investment funds have a 1% entry fee.
There is no fee or charge for encashing all or part of your investment at any time. Our investment funds also have an annual management fee which differs according to the fund chosen – your investment specialist will explain these to you in full during your meeting. Our historic returns, where quoted, are always net of the management fee.
You can consult the details of Fees and charges in our Regulation, Compliance and Risk Control toolbox
or the Funds Fact sheets available here
How can I lodge a cheque to my KBC Current Account or Deposit Account?
You can lodge a cheque to your KBC Current Account or Deposit Account (where the account allows) by visiting one of our Hubs or posting the cheque along with your account details to:
KBC Bank Ireland Plc,
PO Box 12421, Sandwith Street,
How do I lodge an “a/c payee only” cheque?
A cheque which is crossed with “a/c payee only” must be lodged directly into the KBC current account or deposit account of the named payee. Cheques crossed with “a/c payee only” can also be lodged to a KBC joint account where one account holder has the same name as the account payee on the cheque.
I am having difficulties meeting my mortgage repayments, is there anything you can do for me?
Please click here for information on how we can help you.
Information on CRS and FATCA for Personal Banking Customers
Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA)
We recommend you contact a professional independent tax advisor to discuss your personal tax situation, to help you understand the international regulations and ensure you comply with them. We do not offer tax advice and are unable to help you decide your tax status or guide you with filling in forms. We can however provide some general explanatory information which we have included below.
What is the CRS?
The CRS was approved by the Organisation for Economic Cooperation and Development (OECD) in 2014, and is a single global standard on Automatic Exchange of Information (AEOI). The aim of CRS is to have a globally co-ordinated approach to the disclosure of financial account information in respect of individuals and organisations, in order to combat tax avoidance. The CRS imposes on all financial institutions in participating jurisdictions, duties of identification, classification and reporting of accounts held by reportable customers to its local country tax authorities. There will then be a reciprocal automated exchange of this information between tax authorities in participating jurisdictions. Section 891F of the Taxes Consolidation Act 1997 implements CRS into Irish Law.
What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) is a piece of U.S. legislation. Its aim is to combat tax evasion by U.S. citizens and residents who hold assets off-shore by improving the exchange of information between the U.S. and foreign tax authorities. In December 2012, the Irish Government signed an agreement with the U.S. in relation to the implementation of FATCA in Ireland. The agreement provides for the automatic reporting and exchange of information on an annual basis in relation to Financial Accounts held in Irish Financial Institutions by U.S. persons, and the reciprocal exchange of information regarding U.S. Financial Accounts held by Irish residents. Section 891E of the Taxes Consolidation Act 1997 implements FATCA into Irish Law.
What is the impact of FATCA and CRS on You?
When opening personal accounts, we have a legal requirement to obtain a CRS and FATCA Self-Certification from the customer as part of the account opening documentation. This Self-Certification is required to (a) determine whether the account holder is a U.S. Citizen, (b) determine the account holders’ residence(s) for tax purposes, and (c) obtain the applicable foreign Tax Identification Number (TIN) if appropriate. We must also confirm the reasonableness of the Self-Certification based on information obtained in connection with the account opening. If customers do not provide all the information requested, we will not be able to proceed with opening the new account until the relevant information is provided.
Where there is a conflict between the tax certification and other customer information that we have on file, we are obliged to request customers to provide us with a reasonable explanation and documentation supporting the reasonableness of the tax certification provided. An example of such a conflict would be if a customer declares that they are tax resident in the Republic of Ireland but they have a UK mailing address
The explanation required will depend on the specific circumstances of each customer. It should explain why the customer is satisfied that they are tax resident in the jurisdiction provided in the tax certification completed at account opening. It should also include a detailed explanation as to why there is a difference between the jurisdiction of tax residence included on the tax certification and other information held by us.
If we take an example of a customer who certifies that they are tax resident in the Republic of Ireland but who has a Spanish mailing address, a reasonable explanation might be that they are living and working in Ireland but continue to have their post sent to their parents address in Spain.
If a personal customer is a U.S. Citizen and/or has a tax residence outside of the Republic of Ireland and does not provide us with a foreign TIN*, we cannot open the account. (*except in limited circumstances e.g. where foreign country does not issue TIN)
We are obliged to submit an annual return to the Irish Revenue providing information on reportable customers (e.g. U.S. Citizens and other customers who are tax resident outside of the Republic of Ireland). The Irish Revenue will then forward this information to the relevant participating jurisdiction.
Under the CRS and FATCA, we are required to undertake certain identification and due diligence on our customers. We may contact customers requesting that they complete a CRS and FATCA Self-Certification form where we do not hold the necessary information, or, where there is a change in circumstances on a customer’s account(s) which may indicate a change in their status for CRS and/or FATCA eg. a change of address from one country to another. If the customer does not provide us with a completed Self-Certification we may be required under law to provide some of their details to the Irish Revenue as someone who has not replied. Providing a completed Self-Certification form will help us to decide if we need to share your information or take you out of scope of reporting.
Who will be reported?
U.S. citizens and persons who are resident outside of the Republic of Ireland for tax purposes are reportable.
What information will be reported?
If a customer has a tax residency outside of the Republic of Ireland or are a U.S. Citizen, we are required to report the following details in respect of all accounts that a customer holds with us to the Irish Revenue (where relevant): name, address, date of birth, place of birth, account number, U.S. citizenship and/or jurisdiction(s) of residence, Tax Identification Number (TIN), account balance or value at year end and payments made with respect to the account during the calendar year. Irish Revenue will report this data to the tax authorities of each participating country where the customer is tax resident or to the IRS in the case of U.S. citizens.
Information on Tax Residency and Citizenship
Tax residence relates to where you live and pay tax and citizenship relates to where you were born or the country of your passport. You can be tax resident in one country and a citizen of another. Each country has its own rules on tax residence.
A person coming to live in the Republic of Ireland or who are returning to the Republic of Ireland after living abroad for a number of years may not be tax resident in the Republic of Ireland from the date of arrival and may continue to be tax resident in the country in which they previously resided. Further information on tax residency and the implications for people coming or returning to live in the Republic of Ireland is available on the Irish Revenue website.
Further information on U.S. Citizenship and tax residence is available here
Further information on tax residency of jurisdictions is available here
What is a TIN?
A Taxpayer Identification Number (TIN) is a generic term for the unique reference number held for an individual or entity issued by the relevant Tax Authorities. For example this might be your National Insurance Number or Social Security Number for individuals. For entities, this might be your Employer Identification Number, Unique Business Reference or Corporation Tax Number. Other examples can be found via the Tax Identification Numbers (TINs) webpage.
Unable to provide a U.S. TIN
A person born in the U.S. is regarded as a U.S. citizen. Where a customer is a U.S. citizen we cannot proceed to open the account where the customer is unable to provide us with a U.S. TIN. Where a customer advises that they have never received a U.S. TIN, in order to open an account, the customer must apply to the U.S. for a TIN, or, renounce their U.S. Citizenship.
Information on how to apply for a U.S. TIN can be found here
Information on how to relinquish U.S. citizenship can be found here
How frequently will you have to provide information for FATCA / CRS purposes?
Customers should promptly advise us of any change in their tax residency status. To the extent that there is a change in the account information of a customer, we may be required to contact them to obtain additional information so that we can update their account classification for FATCA / CRS.
When might you have to recomplete a Self-Certification form?
- If you have not completed all the mandatory sections of the form
- If the TIN is missing without explanation or in an invalid format
- If the form is not signed and dated correctly
- If the person signing the form is not listed as an authorised signatory on our records for the account or does not have the capacity to sign on your behalf
- Altering the documents would also mean we would have to send them back to you. For example:
- If you cross out any information, including the pre-printed text,
- If you over-write any information, or use correction fluid to change the content
- If you haven’t submitted all the relevant additional documentation you’ve been asked for, e.g. copy of passport/driving licence etc
You can find more information on the revenue website
Tax Advice and Disclaimer
We recommend you contact a professional and independent tax advisor to discuss your tax situation, to help you understand the international regulations and ensure you comply with them.
Please note that the information contained in this document is for information purposes only and is intended for general distribution. Please note that KBC does not offer taxation advice and will not be liable for any errors contained in Self-Certification forms. If you have any questions on CRS/FATCA you should contact your tax advisor or the Irish Revenue.
What is a BIC number?
The BIC (Bank Identifier Code) is a number unique to each bank which is used when making automated payments.
The SWIFT or BIC number for KBC Bank Ireland is as follows: ICONIE2D
What is SEPA?
SEPA (Single Euro Payments Area) is a European Union regulatory initiative that will standardise electronic Euro payments to make it easier to transact across Europe. SEPA is a natural step forward following the implementation of the Euro currency in 1999. In total, there will be 33 countries under the SEPA umbrella – comprised of 28 EU Member States, 3 EEA Zone Countries plus Monaco and Switzerland.
EU, Euro zone countries (28)
Austria, Belgium, Cyprus, Estonia, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovak Republic, Slovenia and Spain, Bulgaria, Croatia, Czech Republic, Denmark, Great Britain, Hungary, Latvia, Lithuania, Poland, Romania and Sweden.
EEA zone countries (3+2)
Iceland, Norway, Liechtenstein - plus Monaco and Switzerland.
How can I update my address?
You can use either Online Banking or Mobile Banking to update your address.
Alternatively, you can post an original signed instruction stating your account number and your new address to KBC Bank, Sandwith St, Dublin 2.
When will I receive my deposit statement?
2018 annual statements have issued in 2019. We will begin to issue 2019 annual statements in early 2020.
What if I forget my PIN?
If you have forgotten your PIN you can ask for a PIN reminder on our Mobile Banking App or our Online Banking website. You can also phone 1800 93 92 44 for assistance.
What is the meaning of V/D on my account statement?
V/D is short for Value Date and is confirmation of the date that we received your funds and from which date you will receive ‘value’ or interest. In some instances it may be different from the date that appears on your statement as this is the date the transaction occurred on your account.
Why is the interest explanation note on some statements appearing differently?
There are 3 ways that your interest may appear on your statement depending on the account and the type of transaction:
1. Account Rollover - The Credit from the total interest is shown on one line and credited to your account. There is also a line below ‘Interest – Capitalise’ which highlights that this credit is worked out by taking interest less Dirt = credit
2. Interest at Maturity - The Credit from the total interest is shown on one line and credited to your account. On the following line of your statement the DIRT is deducted. The final line shows the NET interest paid from your account.
3. Account Closure - If you have closed your account or are moving to a different product the interest entries will appear on individual lines. This includes the interest credited to your account. On the following line the DIRT amount deducted and the NET interest repayment that was paid from your account. The final line shows the closure of your account and balance paid from your account.
Will I be charged for ATM Transactions?
Subject to the Schedule of Fees and Charges you may be charged per ATM transaction. If you are using an ATM outside the Republic of Ireland please refer to our Fees & Charges Booklet (pdf, 71 KB).
What happens if I do not recognise a transaction on my account?
If you do not recognise a transaction on your account, you can contact our customer service team on 1800 93 92 44