Taxes Consolidation Act 1997 section 739E

Deduction of tax on the occurrence of a chargeable event

Section 739E sets out the rates of exit tax on gains from investment undertakings and the mechanisms for accounting for and recovering that tax.

• Exit tax applies at 38% for individuals (25% for companies with a declaration), or 60% for personal portfolio investment undertakings from 20 February 2007
• Tax paid on an 8-year deemed disposal can be credited against tax on a subsequent actual disposal, with any excess refundable to the unitholder
• Companies must provide a declaration including their tax reference number to the investment undertaking to qualify for the reduced 25% rate
• Investment undertakings may elect not to account for exit tax where chargeable units represent less than 10% of total units, with the unitholder then reporting directly to Revenue