Calling all Non-Resident Landlords – Important Update

Calling all Non-Resident Landlords – Important Update

Prior to Finance Act 2022 rental payments made direct to a non-resident landlord meant that the tenant was required to withhold 20% Income Tax and pay this over to Revenue on behalf of the landlord. 

The alternative was for the landlord to appoint a “collection agent” and that Irish resident person became responsible for filing and paying the Income Tax for the landlord and could withhold some of the rent to pay the tax due.  This option placed significant onus on the collection agent as they were the person responsible for the payment of the tax on the rental income.

From 1 July 2023 there is a new online system being introduced by Revenue which allows tenants and collection agents to notify Revenue online via ROS, or My Account, of payments to landlords. The new online system also facilitates the online payment of the 20% withholding tax by the agent or tenant.

Provided certain information is provided together with the withholding tax, the agent is no longer responsible for the income tax owed by the landlord which removes significant burden for collection agents in this space. 

Income Tax/Corporation Tax for landlords is returned by or on behalf of the landlord themselves, claiming a tax credit for withholding tax deducted, and the collection agent is no longer obliged to make these filings. 

A new Tax and Duty manual has been published by Revenue detailing the new system.

We are delighted to assist non-resident landlords or indeed collection agents in the above and with navigating the new online system. Please feel free to reach out to Alma O’Brien or Margaret Balfe.