As a non-resident landlord with ROI rental property you will have previously received Revenue correspondence in relation to Non-Resident Landlord Withholding Tax – NLWT. There has always been a requirement to withhold 20% from the rent and pay it across to Revenue. To date, on a concessionary basis, Revenue has not enforced this requirement where the non resident landlord was registered for income tax in Ireland in their own right and filed a tax return on an annual basis.
There has been a recent overhaul of this legislation, and the requirement to withhold is now going be enforced. Consequently there are now two options available to non resident landlords:
- The tenant withholds the tax (20% of the rental amount) and remits to Revenue,
- A Collection Agent is appointed, and they withhold and remit 20% of the rent payment to Revenue.
The system for processing and paying this Withholding Tax is now all online via ROS or My Account under the heading ‘Manage Non-Resident Landlord Withholding Tax’. Collection Agents or Tenants will make monthly Rental Notifications (RNs) when the rent is paid to the non-resident landlords, and remit 20% of the rent payment to Revenue. The withheld sum will be available to the non-resident landlord as a credit when they submit their annual tax return. There have been numerous discussions between the various accountancy bodies and Revenue about the impracticalities of this process, however Revenue have remained adamant that it must be implemented by non-resident landlords.
In most cases it may not be practical nor preferable for a tenant to withhold the 20% and pay it over to Revenue, and many letting agents are unwilling to act as Collection Agent. As an alternative we are in a position to submit Rental notifications on your behalf. With this structure you can continue to collect the rent gross and we can arrange for payment of the withholding tax to Revenue, which can be set up by monthly direct debit from your nominated bank account.
The information required to facilitate the Collection Agent setup is as follows:
- Address of the rental property;
- The property’s Local Property Tax (LPT) ID;
- A schedule of the gross rental amounts and dates payable by each rental property ; and
- The ROI bank account details for the account from which the payment(s) is to be made
From the information provided we will produce an RDI Authorisation for signing, in respect of each applicable rental property. From the details provided we, as Collection Agent, can set up a Direct Debit mandate with Revenue for the withholding tax payment(s) due. This DD will be set up to cover the full calendar year and will remain in place unless you advise us otherwise. It will be your responsibility to notify us if the rental amount changes or ceases or bank account details change. The relevant payment to Revenue will be deducted from your nominated Bank account on the 1st day of the month.
Please note we are only offering this service to those for whom we also act as Tax Agent i.e. where we prepare and submit your income tax return. If you wish to avail of our services as both your Tax and Collection Agent, our fee structure is as follows:
- preparation of rental accounts and related tax computation and return – from €450 per annum, dependent on the number of properties and providing that all information, as requested, has been provided on a timely basis.
- €200 one-off initial setup to include client onboarding and AML requirements.
- Thereafter, €100 per annum to setup and process Withholding Tax payments.
- €100 to process an amendment to the payment amounts or bank details required during the year.
All fees are payable by way of direct debit.
Should you wish to proceed or have any other queries on the above please do not hesitate to contact us on 0749321420 or email@example.com.