Most company directors are obliged to file an income tax return each year, even if their income consists of a salary which is taxed at source under PAYE. Surcharges, interest and other sanctions can apply for late or non-filing of returns.

Individuals who are employees and taxed as source under PAYE and have Rental, Interest, Dividend, Foreign or other non-PAYE income of €5,000 or more are also obliged to file an income tax return each year. They are also obliged to pay preliminary tax on this non-PAYE income and are liable to surcharges, interest and other sanctions for late or non-filing of returns.

Our expert team will advise on all the eligible reliefs and deductions that can be claimed each year to maximise tax efficiency.

Individuals who are employees or non-proprietary directors and are taxed as source under PAYE but have Rental, Interest, Dividend or other non-PAYE income of €5,000 or less are also obliged to file an income tax return (Form 12). Depending on the nature and source of income, it may not be necessary to file a Form 12 return each year.

The form 11 or form 12 returns will capture any tax credits or reliefs that were not claimed or deducted from PAYE source income. This would typically include:

• Unreimbursed Medical Expenses
• Non-routine Dental Expenses
• Flat Rate Expenses
• Mortgage Interest Credit
• Permanent Health Insurance
• Health Insurance
• Pension Contributions
• EIIS Investments
• Dependent Relatives/Incapacitated Child

Our expert team will advise on all the eligible reliefs that can be claimed each year to maximise tax efficiency.

Non-resident landlords are also obliged to file an income tax return in respect of any rental income from property located within the state.

Non-resident landlords are also subject to Non-Resident Withholding Tax obligations and their letting/collection agents or tenants are obliged to withhold 20% of gross rent and remit it directly to Revenue each time a rent payment is made.

Where one or more properties are being disposed of the Non-Resident Landlord will be required to apply for Non-Resident Capital Gains Tax clearance from Revenue in advance of the disposal. If clearance is not obtained prior to completion of sale, the solicitor for the vendor is obliged to withhold the entire proceeds of sale until evidence of Non-Resident clearance can be provided.

Our expert team will advise on all the eligible reliefs and deductions that can be claimed each year to maximise tax efficiency and can assist with Non-Resident Clearance applications to Revenue.

The sale of Property, Shares, Share Options, Cryptocurrencies or Other Assets can result in a Capital Gains Tax liability where the net gain from all disposals exceeds €1,270 in a calendar year. Details of all Capital Gains need to be returned and paid within a specified timescale to avoid penalties and interest for late payment.

It may be possible for losses on disposal of assets to be offset against gains on others where the losses and gains arose in the same tax year. Where an overall loss arises, it may be possible to carry these losses forward to be offset against capital gains in a subsequent tax year.

The sale of an asset for more than €500,000 and/or the sale of a house or apartment for more than €1,000,000 obligates the vendor to apply to Revenue for CGT clearance (CG50A) prior to disposal. If CGT Clearance is required and not provided by the vendor prior to completion of sale, the buyer is obliged to withhold 15% of the sale proceeds and remit it to Revenue.

Our expert team will advise on all the eligible reliefs and deductions that can be claimed each year to maximise tax efficiency and can assist with CGT Clearance applications to Revenue where required.

Gifts or inheritances received from family or friends may also result in a Capital Acquisition Tax liability where the net amount received exceeds small gift exemption or CAT class thresholds.

Details of all gifts and inheritances also need to be returned and paid within a specified timescale to avoid penalties and interest and paid within a specified timescale to avoid penalties and interest for late payment.

Our expert team will advise on all the eligible reliefs and deductions that can be claimed each year to maximise tax efficiency.