Yesterday, Revenue eBrief No. 59/18 was published. This comprehensive nine-page document outlines the tax treatment for income arising from the provision of short-term accommodation:
A short-term letting is defined as a letting of all or part of a house, apartment or other similar establishments:
– As a tourist, holidaymaker or other visitor
– For a period which does not exceed or is unlikely to exceed 8 consecutive weeks
As you are aware, Finance Act 2017 increased the rate of stamp duty on the transfer of non-residential property from 2% to 6% with effect from midnight on Budget Day.
The change applied to instruments executed on or after 11th October 2017.
This dramatic increase will, most likely, reduce the number of commercial property transactions carried out in Ireland in 2018. Read More
It’s very difficult to keep up to date with all the amendments to the Irish tax system so here is a summary of some of the changes to be mindful of in 2018:
1. Annual Membership Fees paid to a professional body (Revenue eBrief 04/18 published on 9th January 2018)
The updated Revenue guidance notes allow an employee to claim a deduction for professional membership fees only in circumstances where: Read More
A stamp duty refund scheme in respect of land purchased to develop residential property was signed into the 2017 Finance Act on 25th December 2017.
The Act provides that where stamp duty, at the new higher rate of 6%. is paid on the acquisition of land which is subsequently used to build residential property, the purchaser will be entitled to a rebate of 4% being 2/3rds of the duty paid.
It is important to keep in mind that the refund of stamp duty is only applicable in relation to the proportion of the land used for residential development. Read More
The Minister for Finance, Public Expenditure and Reform Paschal Donohoe T.D delivered his first Budget on 10th October 2017 which concentrated more on expenditure than on tax changes. The Minister announced a number of positive measures to assist small and medium sized enterprises prepare for “Brexit” as well as confirming Ireland’s commitment to the 12½% corporation tax rate. We are pleased to bring you our summary of the tax measures set out in Budget 2018.
What is Rental Income?
According to the Revenue’s website, Rental income includes:
- “the renting out of a house, flat, apartment, office or farmland
- payments you receive for allowing advertising signs or communication transmitters to be put up on your property
- payments you receive for allowing a right of way through your property
- payments you receive for allowing sporting rights such as fishing or shooting rights on your property
- payments you receive from your tenant to cover the cost of work to your rental property. Your tenant must not be required to pay for this work per the lease
- certain lease premiums, as well as deemed and reverse premiums
- Conacre lettings
- service charges for services connected to the occupation of the property
- payments from insurance policies that cover against the non-payment of rent.”
THE SPANISH SYSTEM HAS TWO TYPES OF PERSONAL INCOME TAX:
-PIT for Spanish resident individuals and
-NRIT for individuals who are not resident in Spain
Spanish resident individuals are generally liable to PIT on their worldwide income wherever it arises. Non-resident individuals are chargeable to NRIT on their Spanish source income only.
An individual is liable to Spanish tax based on his or her residence. An individual is deemed to be Spanish resident if he or she spends more than 183 days in the tax year (i.e. the calendar year) in Spain or if the individual’s main centre of business or professional activities or economic interests is located in Spain.
There are a number of alternatives open to individuals wishing to invest in Spain. These include setting up a limited company or forming a branch / permanent establishment.
Due to the number of foreign clients with trading companies in Spain, we have prepared a general summary of the taxes arising.
This is not a full and comprehensive guide to Spanish taxes and does not provide detail on the local operation of taxes. As a result, we would always advise anyone with Spanish interests to seek the advice and expertise of a local tax professional.
Everyone is aware that significant changes were introduced in the 2016 Irish Budget but have you thought what they might mean for you?
Prior to 25th December 2016, Section 86 CATCA 2003 provided a means of passing on a property to the next generation, either by gift or inheritance, in a tax free manner.
The High Court decision in Revenue Commissioners v Thomas Collins has just been published.
It states that contrary to Revenue’s position, the NPPR (Non Principal Private Residence) charge was in fact an “allowable” expense against rental profits under Section 97(2) TCA 1997.
Corporation Tax Returns
The Irish corporation tax system operates on a self-assessment basis. Therefore, it is solely the responsibility of the company to calculate and pay its corporation tax liability within deadline.
Any company liable to corporation tax must submit a CT1 Form which is a Tax Return containing details of profits, chargeable gains and other relevant information as outlined in Section 884 TCA 1997.
If you intend to set up a new company in Ireland in 2017, please be aware that you must register with the Irish Revenue Authorities within thirty days of incorporation. This can be done by completing the relevant sections of a TR2 Form: