November 2022
The following Tax and Duty Manuals (TDMs) have been updated to reflect changes introduced in Finance Act 2021 to the taxation of non-Irish resident corporate landlords in receipt of Irish rental income.
- TDM Part 02-02-01 - Corporation Tax - General Background - has been updated in section 1,
- TDM Part 02-02-02 - The charge to and rate of Corporation Tax - has been updated in section 3,
- TDM Part 02-02-04 - Certain non-resident companies within the charge to Corporation Tax (section 25 TCA 1997) - has been updated in sections 1, 2 and 3,
- TDM Part 02-02-05 - Corporation Tax - General Scheme, Scope of charge and Basis of assessment - has been updated in section 1, and
- TDM Part 02-02-08 - Corporation Tax/Capital Gains Tax interaction - has been updated in section 2.
These corporate landlords are subject to corporation tax rather than income tax on Irish rental income from 1 January 2022. In addition, from 1 January 2022, a gain on the disposal of an asset by a non-resident company, the profits or gains from which were chargeable to tax under Case V of Schedule D, is within the charge to corporation tax rather than capital gains tax. The only exception to this rule is where a gain is realised on the disposal of development land, in which case the gain is within the charge to capital gains tax.
Source:
www.revenue.ie