Irish Collection Agent

UPDATE

Introduction of the Non Resident Landlord Withholding Tax system

Revenue recently announced the introduction of a new Non-Resident Landlord Withholding tax system (NLWT) which they hope to launch from 1 July 2023.  This change is dependent on a Ministerial order which is pending the introduction of a new Non-Resident Landlord Withholding tax platform.

Revenue website on the matter refers to manual that have not been updated for the changes and we are awaiting clarification.

We’ve also emailed Revenue for more information, as we are keen to provide more information to the non-resident landlords on the changes. 

We will contact our clients immediately with more information as soon as we have any update from the Revenue.  If you are not our client but also wish to receive those updates, please email your  details to rentalincome@redoak.ie and we will include you in the Non-resident landlords update list.

The following advice relates to the system in place up to JULY 2023 and still stands for returns up to and including 2022 and part of 2023

Appointing a Resident Responsible Person

If you are a non resident landlord, then you are required to appoint a resident responsible person who takes on obligations regarding your taxes in Ireland. This Irish resident responsible person may be :

1. The tenant: They satisfy the requirement by deducting 20% from the gross rent before completing the required documentation and submitting this to Revenue.
2. A collection agent: The collection agent needs to be resident in Ireland and assumes legal responsibility for the tax liabilities in relation to the rental income of the property. They also ensure that all tax reporting obligations relating to this rental income are satisfied.

You cannot make a Tax Return for a non-resident landlord without one of the above in place!

Tenant deductions

Unless you have a close relationship with the tenant we do not recommend this option. You are putting yourself at risk of the tenant not remitting the deductions to Revenue.

Irish Collection agent

The Collection Agent may be any resident person. Examples include:

1. A friend or family member: Being a Collection Agent is a significant responsibility. If you choose a friend or family member for this role, they should get independent professional advice on their responsibilities attached to this role.
2. A Letting Agent, a Tax Agent, or other professional person: Some Letting agents are offering their services as your Irish Collection Agents, but many more are not as it requires an understanding of the Revenue obligations. 

It is worth noting that this is not a new requirement. However, The Irish Revenue did not enforce this requirement before the 2020 tax year and accepted tax returns without a tenant deduction completed or a collection agent in place.

Red Oak as Collection Agent

Red Oak provides a service where we can act as collection agent for non resident landlords.

To find out more, contact us for a no obligation consultation.