Tax Obligations Investment Funds

If you buy or sell an interest in a managed fund, you will be obliged to file a tax return by 31 October in the following year, outlining the following details such as:

  • Name and address of the fund;
  • Date interest in the offshore fund was acquired or disposed of;
  • Amount of capital invested in acquiring the offshore fund; and
  • Name and address of intermediary through whom the material interest was acquired.
  • Profit arising on sale

Any gain made on the sale of an interest in a fund or part of the interest, will be subject to tax at the prescribed rate, currently 41% (rate in force for 2017). PRSI may also apply in certain circumstances. Gains generated within the fund which are not distributed to the investors are taxed on a gross rollup basis. This means that the fund can grow tax free until they are sold by the investors or for 8 years, whichever is shorter.