As a reiteration and a clarification, Revenue Minister Peter Dunne has talked recently about the Fair Dividend Rate (FDR) on overseas investments the and taxation of it.

Revenue Minister Peter Dunne has spoken out about the recent confusion in the media and practitioners about the Fair Dividend Rate. It is the opinion of Peter Dunne that the new FDR will make taxation fairer than those in place earlier.

In his media release Mr. Dunne characterized the new rules via an example. In the case that an overseas investment was to go up from $100,000 to $110,000, the new laws will come into effect with the rise in investment value. Of the $100,000, 5% would be counted as income, to be discerned with under the individual investor’s taxation code. In the years that an investment looses value, there is no taxation. This is also independent of dividends.