Form 11 - Foreign Rental Income

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meular

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I am completing a Form 11 for the first time and am unsure of the following:

1. I understand that I pay tax at the marginal rate but on what figure is it (a) gross rent less expenses or (b) gross rent less expenses less foreign tax deducted (property in Country with double tax treaty with Ireland

2. How much is payable before 31/10/08, is it (a) tax amount due for 2007 or (b) tax amount due for 2007 plus prelim tax for 2008 which I understand is 90% of 2007 tax payable figure

3. Finally can any one advise me sterling-euro exchange rate for the purposes of this tax return for 2007

Many Thanks
 
Last edited:
meular said:
I am completing a Form 11 for the first time and am unsure of the following:

1. I understand that I pay tax at the marginal rate but on what figure is it (a) gross rent less expenses or (b) gross rent less expenses less foreign tax deducted (property in Country with double tax treaty with Ireland

2. How much is payable before 31/10/08, is it (a) tax amount due for 2007 or (b) tax amount due for 2007 plus prelim tax for 2008 which I understand is 90% of 2007 tax payable figure

3. Finally can any one advise me sterling-euro exchange rate for the purposes of this tax return for 2007

Many Thanks
Click to expand...

Hi,

You pay tax on the gross rent less expenses, i understand you then get a credit for tax paid abroad therfore you do not deduct the foreign tax from your gross rent.

The tax payable before 31/10/08 is the balance from 2007 and Preliminary Tax for 2008 which can either be 100% of the previous years liability i.e 2007 or 90% of the current years liability i.e. 2008.

If you search the revenue.ie website there is a section for their official exchange rates.

Best of luck,

Jockey
 
Mid Market Closing Rate for sterling - euro for 2007 is 0.6843. There's an ebriefing on it.

Depending on the taxation agreement, you either get a credit for the foreign tax paid or a concessionary exemption from tax on the property.

The majority of the agreements allow for credit method as opposed to the exemption method. There is a box on the form 11 where you state the amount of foreign tax paid.

When you receive your Notice of Assessment you should see double taxation relief under the reliefs and credits section.
 
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