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Tax on P2P lending profits

Lazy Bhoy · 2014-06-30 19:31:25

I have been looking at investing some money into P2P lending companies both here and abroad. I want to know how any profits on such investments are taxed. I brought up the idea while out with some friends over the weekend and nobody could agree exactly how such profits would be taxed and if anything the discussion has left…

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30-06-2014 8:31pm

#1
Lazy Bhoy

Registered Users Posts: 215 ✭✭

Join Date: December 2008

Posts: 179
I have been looking at investing some money into P2P lending companies both here and abroad. I want to know how any profits on such investments are taxed. I brought up the idea while out with some friends over the weekend and nobody could agree exactly how such profits would be taxed and if anything the discussion has left me more confused.

I am aware of the risks of such lending so I am not looking for that type of advice but if anybody could explain about the tax side of things then I would be extremely grateful.

Tagged:

tax

p2p banking

p2p lending

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#2 30-06-2014 11:59pm
Alan Shore

Registered Users Posts: 735 ✭✭✭

Join Date: May 2010

Posts: 734

My understanding is that you lend money to the enterprise. The enterprise then repays you an agreed rate of interest.

Interest is taxed asincome at your marginal rate of tax, PRSI is due (if a chargable person) and USC. There may be withholding tax obligations on the enterprise but you will get a credit for that.

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