Must I pay tax to Ireland and the USA on US stocks?

[blackshire]

I just switched from trading212 to Degiro.
As I was setting it up I filled out a W-8ben form.
I don’t think i ever filled this out for trading 212. Now that I have one done for degiro, does this cover me over all platforms?

Secondly, i was a little confused on what the W8-BEN actually is.
I searched it in the forum and found a useful link.
https://www.davy.ie/binaries/content/assets/davy/private-clients/useful-forms/2018/w-8ben-faq.pdf
It says that Irish citizens avail of 0% capital gains on US stocks. But I assume this is only to the US government and not the Irish too? I read that you must pay tax to the US government and then subtract that from the Irish CGT.
If my understanding is correct then you would be paying the same amount either way? I assume I don’t get any irish tax reduction just from filling this out?

Apologies for my confusion. Any simple explanation would be much much appreciated!!

 

[resjudicata]

@blackshire Someone is buying amc and gme

 

[blackshire]

@resjudicata How did you come to this conclusion. But more of a gme man for the record lol

 

[resjudicata]

@blackshire I buy both my fellow ape. We will be millionaires soon

 

[blackshire]

@resjudicata Can’t wait !!

 

[averagejonah]

@blackshire Good to meet fellow apes in the wild

 

[richard373]

@blackshire Why is there such hype around GME? Is it really expected to be the next big earner?

 

[averagejonah]

@richard373 r/superstonk

 

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[blackshire]

@richard373 A lot of people like to hate on it but it’s definitely worth looking into. Ryan Cohen has been making big changes and has most likely saved the company. They have next to no debt, something like 1B in cash and they are cutting unprofitable stores. Their past earnings have looked great.
However, it is the short interest that is what will most likely make it go up. Back in January, the price was rocketing as hedge funds shorted so much of the stock. It now is speculated that the float has been shorted many times over, ie. even shares that shouldn’t exist have been shorted. Eventually these positions will be closed. If retail own over 100% of the float then in theory the price will keep going up as high as the majority wait.
I recommend doing your own research as always!

 

[katie1010]

@richard373 Yes

 

[sweetleaf95]

@blackshire When you, as an Irish tax resident, sell US stocks, there is a taxable event in both Ireland (Irish resident selling asset) and a taxable event in the US (the sale of a US asset)

Both countries will seek to tax you on the event, but then these countries have double tax agreements that basically agree how they’ll behave in the event of a double tax event.

As you read, you will pay tax in the US, tax in Ireland, then reduce the amount of tax paid in Ireland by the amount paid in the US.

It will equate to the same, it’s just how double tax agreements account for tax events in two countries

 

[blackshire]

@sweetleaf95 Many thanks for your reply. So after completing the form does that mean I don’t have to deal with the US and only pay full tax to Ireland? If not, how does one send money to the US government?

 

[penguinpet]

@blackshire If you’ve filled out the form, you just pay CGT in Ireland. Here’s the info from Davy’s (I just found it handy, Degiro probably has the same info)

Double taxation agreement

 

[evalley]

@sweetleaf95 I believe there is a form you need to submit to your stock account or to US IRS....

W8-BEN I think but I'm open to correction

 

[onthecross]

@evalley That's the one I filled out.

 

[hmarie39]

@blackshire W-8 is only applicable when you're receiving a dividend! Do not worry about capital gains on this! You'll only be charged capital gains tax in Ireland because of their agreement with U.S

 

[penguinpet]

@hmarie39 You have to fill out the W8ben for both stocks (CGT) and dividends.

 

[hmarie39]

@penguinpet I was talking about the applicability of stocks that has W-8 requirements

 

[blackshire]

@hmarie39 Thank you!