Dáil Éireann Debate, Wednesday - 16 December 2009
99 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the reason landlords resident outside the State cannot pay tax on their rental income directly but must rely on their tenant to make the payments; and if he will make a statement on the matter. [47255/09]
View answerI am advised by the Revenue Commissioners that under existing tax legislation a tenant paying rent to a non-resident landlord in respect of property located in the State is obliged to deduct income tax at the standard rate unless the non-resident landlord is assessable and chargeable to income tax in the name of a representative in the State. These provisions are designed to promote greater compliance having regard to the risk factors associated with non-resident taxpayers and ensure, in the case of non-resident landlords who don't have a representative here, that a minimum tax payment is made in respect of rental income arising here. A non-resident landlord will normally pay income tax in his or her own country of tax residence in respect of worldwide income (including Irish source rental income), subject to a credit for Irish tax deducted if there is a double taxation treaty in place.
