The Revenue has made some changes around tax returns for Non-Resident Landlords. They now require that the Landlords Collection Agent is the same person or company that completes their annual tax return.
As Earnest are not tax advisors or accountants, we can’t complete non-resident tax returns and so we can’t be the appointed collection agent.
However this does not mean that we won’t continue to withhold taxes on your behalf. What it means is that Earnest will no longer make payments to the Revenue directly for non-resident taxes withheld.
The monies will be held in our client account until the landlord or their accountant requests that it is released. Earnest will pay the monies held in full to the IBAN they provide.
One benefit to this is that the revenue will not be paid the full 20% withheld. The landlord will receive the full amount from Earnest but the revenue will only be given the net after calculations.
1. Earnest have managed the property for 12 months (January – December 2020) and hold €3500 in non-resident tax.
2. The landlord’s accountant does their tax return and has their ROS account linked with the landlords IBAN.
3. The accountant completes the Landlords tax return online and then emails Earnest confirming the same.
4 .Earnest then transfers the €3500 held to the IBAN provided.
5. The accountant authorises ROS to deduct the monies from the IBAN.
Does this apply to the taxes held for the year ended 31st December 2020?
Yes. The monies held for 2020 will be released as per the example above.
What if I do my own tax returns?
You will make your return as usual but this time you will need to link a bank account with ROS (if you haven’t already done that). Once you have filed your return, you just send us the confirmation and we will then transfer to the IBAN you have linked to ROS.
Can I still file a paper return or does it have to be using ROS?
If you usually file a paper return, you should be able to continue doing that. You will find a section for your bank details on the last page of the Form 11.
Will there be any changes for 2021?
We are not sure yet, it will depend on how successful this new system is for the Revenue. The likelihood is that it will be the same for a couple of years with minor adjustments.
Where is the tax held by Earnest?
We keep all monies in a client account which is separate to our business accounts and it is audited twice each year.
Can Earnest recommend an accountant or tax advisor?
Yes we work with a few accountants who are familiar with non-resident taxes and can put you in touch if you wish.