How are crypto gains taxed in Ireland?

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April 27th, 2022
Written by: admin_et

How are crypto gains taxed in Ireland?

Trading in cryptos has become a common past-time for many.

We often encounter queries from clients regarding how these assets are taxed in Ireland.

Revenue released a TDM (02-01-03) today 27.4.22 which outlines some interesting points for anyone who is trading in crypto currency. It's worth a read if you are Irish tax resident and interested to understand how Revenue view crypto gains.

In my opinion, the most interesting part of the TDM reads:

The first step in determining whether or not the remittance basis applies to crypto-assets is to note that the requirement is that the assets are situated outside the State, and not that they are not situated in Ireland. This distinction is important because, where a crypto-asset exists ‘on the cloud’, it will not actually be situated anywhere and therefore, cannot be viewed as ‘situated outside the State’. Where the situs of the crypto-asset is in dispute, the onus is on the taxpayer to prove where the gain accrued. Where the location of the crypto-asset giving rise to a taxable gain cannot be confirmed by the taxpayer, that gain is chargeable to tax in Ireland based on residency rules

So what are the implications of this?

Basically this means a non-domiciled Irish individual cannot assume a crypto asset is within the remittance basis of tax.

If it is not, then whether the underlying gain is 'remitted' to Ireland or not is moot. Ireland would tax the gain.

It'll be interesting to see how the conversation around this point develops given the interest in #cryptocurrency in recent years.

Stephanie Wickham

Stephanie is an award-winning international and expatriate tax specialist with over a decade’s experience. She is a KPMG trained Chartered Tax Adviser and Chartered Accountant.

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