The Irish Government has again refrained from addressing the ETF deemed disposal rule in its latest budget, a tax regulation widely considered a quirk in the Irish tax code. Despite a 2024 review recommending its abolition and a planned reduction in the exit tax, the rule remains in effect.
Introduced in 2006, the deemed disposal rule requires investors in exchange-traded funds (ETFs) to pay a tax - currently 41%, soon to be 38% - every eight years, nonetheless of weather they have sold thier investments. This contrasts with the taxation of individual stocks, where profits are taxed at 33% only upon sale.