Non Resident taxation on Rental Income

[Clueless Clive]

Hi All -

Does anyone know, if the 8 year / 12.5% write off of capital expenses against income tax is applicable to the flat rate 20% non resident taxation on rental income?

It would make sense that it would, but just thought i'd clarify.

Thanks!

 

[jpd]

You are mixing things up

1. Tenant's or agent's have to deduct 20% from the rent and remit it to the Revenue as a prepayment of tax due where the landlord is non-resident.

2. The owner has to submit a tax return each year showing the net profit, if any, made on the rental and pay tax at the appropriate rate. Some, but not all, capital expenses are allowable expenses when calculating the net profit and are written off over 8 years. Any tax remitted by the tenant or agent is offset against the tax due on the net profit

These are two separate calculations and, indeed, are carried out by two different people

 

[Clueless Clive]

You are mixing things up

1. Tenant's or agent's have to deduct 20% from the rent and remit it to the Revenue as a prepayment of tax due where the landlord is non-resident.

2. The owner has to submit a tax return each year showing the net profit, if any, made on the rental and pay tax at the appropriate rate. Some, but not all, capital expenses are allowable expenses when calculating the net profit and are written off over 8 years. Any tax remitted by the tenant or agent is offset against the tax due on the net profit

These are two separate calculations and, indeed, are carried out by two different people

My tenant will 100% not know how to do that. Assuming however that they did, how would I claim the capital expense write off against the tax paid by the tenant?

 

[T McGibney]

You are mixing things up

1. Tenant's or agent's have to deduct 20% from the rent and remit it to the Revenue as a prepayment of tax due where the landlord is non-resident.

2. The owner has to submit a tax return each year showing the net profit, if any, made on the rental and pay tax at the appropriate rate. Some, but not all, capital expenses are allowable expenses when calculating the net profit and are written off over 8 years. Any tax remitted by the tenant or agent is offset against the tax due on the net profit

These are two separate calculations and, indeed, are carried out by two different people

I'm not sure he is.

The income tax rate charged on non-residents in receipt of rental income here is 20% , assuming that the taxable profit is within the 20% tax band.

Capital Alllowances of 12.5% per annum can be claimed as deduction in arriving at taxable profit.

By the way, there is no obligation for anyone to deduct tax at source where the non-resident landlord has appointed a Collection Agent and notified their particulars to Revenue.

 

[T McGibney]

how would I claim the capital expense write off against the tax paid by the tenant?

By completing a calculation of your capital allowance and then including the resulting figure in your tax return.

 

[Paul O Mahoney]

I'm not sure he is.

The income tax rate charged on non-residents in receipt of rental income here is 20% , assuming that the taxable profit is within the 20% tax band.

Capital Alllowances of 12.5% per annum can be claimed as deduction in arriving at taxable profit.

By the way, there is no obligation for anyone to deduct tax at source where the non-resident landlord has appointed a Collection Agent and notified their particulars to Revenue.

Thanks