Dublin: The new system of revenue to collect tax from landowners in Ireland abroad is in effect. The law came as part of the new finance bill. It is estimated that this system will apply to over 20,000 landowners in the country who live abroad.
The Revenue has established a new Non-Resident Landlord Withholding Tax (NLWT) platform system through which tenants or collection agents can collect and remit a portion of the monthly rent paid to the landlord directly to the Revenue via the portal. The new rule, however, excludes rented properties owned by investment vulture funds.
Foreigners who own rental property in Ireland must now declare their income to the Revenue and pay a 20% tax. This can be accomplished through the use of an estate agent, solicitor, or nominee. If the collection agent is required to file an annual tax return, they must also file an annual tax return on behalf of the landlord. The law will also apply to many people who have bought a house in Ireland, rented it out, and immigrated to countries like Australia, America, and Canada.
Non-resident landlords can ask their tenants to deposit 20 percent of the rent. This amount is then remitted to the Revenue through Form R185 along with the personal tax return once a year. Non-resident landlords, on the other hand, must file an income tax return at the end of the year. This can be done through the Revenue Online Service or through My Account, the government has clarified.
Collection agents and tenants are not required to file returns relating to the rental income of the resident landlord. This will be the responsibility of the landowner. According to the revenue spokesperson, the new system will benefit both the country’s financial sector and consumers.
Criticism that it was implemented in haste.
However, Siobhan O’Moore, tax director at professional services firm Mazars, criticised the new system as being good in the long run, claiming that the rush to implement it would cause many people headaches.
The revenue only issued guidelines in this regard in June, and they went into effect on July 1. People were not even given enough time to make the necessary preparations.
It is also claimed that this law will make things difficult for tenants. Those who previously deposited funds in foreign accounts must still ensure that the rent is routed through the Non-Resident Landlord Withholding Tax platform.
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