Income tax warehousing – extended Pay and File deadline applies

Oct 19, 2020

Revenue confirmed that the 10 December ROS Pay and File deadline applies to ROS filers who wish to avail of the Debt Warehousing Scheme. Budget 2021 announced the extension of the Tax Debt Warehousing Scheme, allowing for the inclusion of the balance of 2019 income tax liabilities and 2020 preliminary tax obligations. The warehousing of income tax applies to self-assessed taxpayers who expect their income for 2020 will be at least 25 percent lower than their 2019 income.

The Budget 2021 summary published by Revenue also confirms that where income for 2021 is at least 25 percent lower than income for 2019, the balance of 2020 income tax and preliminary tax for 2021 can also be warehoused.

Where a taxpayer was not a chargeable person in 2019, warehousing of 2020 preliminary tax liabilities may be available where the taxpayer contacts Revenue to advise that they will not be able to pay their liabilities as a result of the impact of COVID-19 restrictions.

Interest is applied at zero percent on debts that have been warehoused for the first 12 months. Interest at a rate of 3 percent per annum, applies thereafter.

The balance of income tax for 2019 cannot be warehoused where there is an underpayment of preliminary tax for 2019. Concessionally this balance may be included in a 3 percent interest rate phased payment arrangement, provided the taxpayer agrees this with Revenue, no later than 10 December 2020.

Further details on this update can be found in Revenue e-Brief No. 190/20.