Niall Collins (Limerick County, Fianna Fail)
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65. To ask the Minister for Finance Ireland’s ranking in comparison to other OECD countries in respect of the capital gains tax rate applied. [48623/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the capital gains tax codes of OECD member countries vary in numerous respects, member countries’ codes and the respective statutory rates are not directly comparable.  Capital Gains Tax (CGT) rates vary depending on a number of factors, including, for example,  whether the disposer of the asset  is an individual or a company, resident or non-resident; the nature of the asset and the scope of exemptions allowed; the duration of ownership of the asset and whether or not inflation indexation of acquisition costs is allowed. As a result, it is difficult to compare like with like and comparing statutory tax rates provides only an initial indication of how taxation of capital gains compares across countries.

Taking the statutory personal CGT rate applied to long-term gains on shares, which is the rate in respect of which up-to-date information is most readily available, Ireland has the 5th highest rate – 33% – of 20 OECD countries that charge such gains to CGT – the average rate being 28.4%.  It should be noted in this context that Ireland applies a uniform rate of 33% to all chargeable gains, regardless of the duration of ownership, whereas other countries may apply a higher rate to short-term gains or by reference to other factors, which, if taken into account, would result in a different ranking and average rate.