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Non-Resident Landlords - Revenue guidance on implementation of new rules

The Revenue Commissioners issued updated guidance, dated March 2022, on the implementation of the new rules for Non-Resident Landlords, some of the salient point for which are outlined below.

What are the new Revenue rules?

Where a non-resident corporate landlord (“NRL”) is in receipt of rental income in Ireland, it is assessable and chargeable to corporation tax in the name of the Irish rent collection agent appointed with effect from 1 January 2022 (as opposed to corporate income tax which applied prior to this).

What are the key tax implications?

Taxable profits will by subject to corporation tax at 25% (as opposed to 20% corporate income tax) and the tax return shall be filed using a Form CT1.

Where a NRL has an amount of unused losses or excess capital allowances at the end of the year of assessment ending on 31 December 2021, those losses or capital allowances may be claimed in the corporation tax return for the first accounting period ending after 1 January 2022.

What actions do you need to take?

If applicable, the registration for income tax should be cancelled. This will not be automatically done by the Revenue Commissioners. Once registered for corporation tax, the normal “pay and file” rules for companies shall apply.

Where a NRL has paid preliminary tax in respect of the year of assessment 31 December 2022 under income tax, the Collector General’s Division should be contacted to arrange the transfer of the payment from preliminary income tax to preliminary corporation tax.

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