All of the following statements apply to a higher-rate taxpayer receiving an Irish REIT dividend except which?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Multiple Choice

All of the following statements apply to a higher-rate taxpayer receiving an Irish REIT dividend except which?

Explanation:
For higher-rate taxpayers, an Irish REIT distribution is treated like ordinary dividend income and taxed at the investor level. That means you’re liable for income tax at your top marginal rate, plus USC, and also PRSI on that dividend income. There’s no exemption from USC or PRSI for these dividends, so all three charges can apply. Therefore the option that includes income tax, USC, and PRSI is the best description, and there isn’t an exception among the listed statements.

For higher-rate taxpayers, an Irish REIT distribution is treated like ordinary dividend income and taxed at the investor level. That means you’re liable for income tax at your top marginal rate, plus USC, and also PRSI on that dividend income. There’s no exemption from USC or PRSI for these dividends, so all three charges can apply. Therefore the option that includes income tax, USC, and PRSI is the best description, and there isn’t an exception among the listed statements.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy