# Does a company director have to file an annual tax return?



## Slash (30 Apr 2005)

I have been told that all directors of Irish companies have to complete a form 12 every year, even if they are non resident and receive no salary or fees from the company.

Is thsi correct? Is it a new requirement?

Have searched the revenue web site but cannot find anything about it there.


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## extopia (30 Apr 2005)

Might as well get this one from the horse's mouth. If you download Form 12 from [broken link removed] you will notice the following text at the top of the form:

*This form is to be completed by a Company Director who pays all his/her Income Tax liability under the PAYE system*

Elsewhere on the form you will find the following:

Directors and Self Assessment 
The Income Tax Self-Assessment system applies to all chargeable persons including directors (other than directors listed below) and includes directors who in the year 2004:

opened a foreign bank account
acquired a material interest in Offshore Funds in a member State of the EU, EEA, or the OECD with which Ireland has a double taxation agreement and/or
invested in a Foreign Life Policy issued from a member State of the EU, EEA, or the OECD with which Ireland has a double taxation agreement.
Directors in the following categories are not chargeable persons for self assessment:
Directors of companies which:
have no assets, other than cash on hands of up to £130,
have not carried on any trade, business or other activity, including the making of investments and,
have not paid charges on income within the meaning of Section 243 Taxes Consolidation Act 1997.
Non-proprietary directors of companies all of whose income, including fees, benefits, distributions, etc. has been subject to tax directly or indirectly under PAYE. 
A proprietary director is a director who can control either directly or indirectly more than 15% of the share capital of a company. The Capital Gains Tax Self Assessment system applies to all individuals, including directors.


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## WizardDr (30 Apr 2005)

I think it certainly used to be the case that if one was non resident and had no taxable income arising in the state ..then no tax return was necessary.

Most certainly if you are Irish resident its the worldwide income so YES for that.


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## Slash (1 May 2005)

Many thanks for your comprehensive reply, extopia.

"I think it certainly used to be the case that if one was non resident and had no taxable income arising in the state ..then no tax return was necessary."

That was always my understanding also, but according to what extopia has written above, even non-resident directors have to complete a form 12 if they satisfy either or all of the three conditions. Is that right, extopia? Sorry if I seem to be labouring the point, but i need to be sure about this one, it could make a big difference to the directors of the company.


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## extopia (1 May 2005)

Slash, I merely cut and pasted the information found on the form itself, for your convenience. 

I really would not feel comfortable interpreting this information for you. You should talk to a professional. Or call the revenue and ask (however you may not get a definitive response).

(I would suggest that the requirement is not LIMITED to directors who meet the three specific conditions listed, however).


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## Slash (2 May 2005)

Thanks very much for all replies.

Has any one else any ideas on this topic?

All of the directors are non-resdient; one received Director's Fees to which PAYE and PRSI were applied. The non-execs want to know if they have to make a tax return in Ireland but I don't think they do since they received neither fees nor salary from the company, although one did receive a payment for some consultancy work.


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