Dáil Éireann Debate, Tuesday - 28 November 2023
203. Deputy Ged Nash asked the Minister for Finance the amount, in numeric terms and as a percentage of GNI*, that the private housing industry contributed to the Irish economy through taxes associated with private property sales, purchases, landlord rental incomes and any other relevant taxes for each of the previous five years; and if he will make a statement on the matter. [52399/23]
View answerI am informed by Revenue that the taxes paid in respect of private property transactions are Stamp Duty, Capital Gains Tax, Local Property Tax, Income Tax, Corporation Tax and VAT. I am further advised that information specifically related to private housing is not readily available for all of these taxes as the profits and gains from private property related activity are generally aggregated along with other economic activity by relevant taxpayers.
Therefore, there is no basis for the Department or Revenue to provide an accurate estimate of the amount which the private housing industry contributed to the Irish economy through taxes in any given year. However, the Deputy may find the following information useful in relation to receipts under the relevant taxheads.
Stamp Duty:
The available information in respect of Stamp Duty on property for calendar years up to 2022 is published on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx.
Capital Gains Tax:
While a breakdown of Capital Gains Tax by asset type is not available, it is possible to indicate the Capital Gains Tax liability associated with certain property disposals in the case of single asset disposals. This is published for tax years up to 2021, the latest year for which fully analysed data are available, at: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/summary-capital-gains-tax-returns.aspx.
Local Property Tax:
The net receipts of Local Property Tax for calendar years up to 2022 is published at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-taxhead.aspx.
Income Tax:
It is not possible to provide information on the amount of Income Tax or Corporation Tax collected in respect of rental income as these taxes are computed on the total taxable incomes of the taxpayers concerned across all relevant streams of income. However, an annual paper in respect of rental income included on Income Tax returns for tax years up to 2021 is published at: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/rental-income.aspx.
Corporation Tax:
Total rental income returned by companies on Corporation Tax returns, including rental income from commercial premises, is published for tax years up to 2021 at: www.revenue.ie/en/corporate/information-about-revenue/statistics/income-distributions/ct-calculation.aspx.
The associated Gross Rental Income returned in respect of residential premises on CT1 returns is as shown in the following table:
|
Tax Year |
Gross Residential Rental Income on CT1 Returns €m |
|
2017 |
359.4 |
|
2018 |
350.3 |
|
2019 |
389.6 |
|
2020 |
402.5 |
|
2021 |
487.2 |
Value-Added Tax:
In relation to VAT, I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to separately identify the VAT generated from the private housing industry from information provided on VAT tax returns.
Modified Gross National Income (GNI*)
Modified Gross National Income (GNI) is an indicator designed specifically to measure the size of the Irish economy by excluding globalisation effects such as depreciation on intellectual property, depreciation on leased aircraft and the net factor income of redomiciled PLCs.
The table below shows the GNI* for the past five years, at current market prices:
|
Tax Year |
GNI* at current market prices (€ million) |
|
2018 |
194,785 |
|
2019 |
210,389 |
|
2020 |
202,898 |
|
2021 |
233,281 |
|
2022 |
273,136 |
