The Minister for Finance, Michael McGrath, has urged tenants who are eligible for the Rent Tax Credit to make their claims without delay. While 137,697 people have already successfully claimed the credit for 2022, the Department of Finance estimates the up to 400,000 tenants may be eligible to claim the relief. The rent tax credit is valued at up to €500 per person, or €1,000 in the case of a jointly assessed couple, and is available for the 2022 to 2025 years of assessment inclusive. As previously outlined, PAYE taxpayers can claim the 2022 rent tax credit by filing a Form 12 via MyAccount PAYE Services, while self-assessed taxpayers can claim the rent tax credit when filing their Form 11 via ROS. In addition, PAYE taxpayers have the option of claiming their 2023 rent tax credit in 2023 by using Revenue’s Real Time Credit facility. Commenting, the Minister said: “The Rent Tax Credit was introduced in Budget 2023 as a means to help renters deal with the rising cost of living. This tax credit is different to most as it applies retrospectively for 2022 as well as going forward to 2025. To date, 137,697 claims have been made in respect of rent paid in 2022. The vast majority of those taxpayers will have received a refund of €500 paid directly into their bank accounts. This is very welcome given that for many, the cost of living pressures are most acute at the beginning of the year. I would strongly urge tenants who have not already done so, and who are eligible for the Rent Tax Credit, to complete their 2022 tax returns through Revenue’s myAccount without delay so they can claim the refund, and any other tax refunds that they may be due.”  

Revenue has updated the Tax and Duty Manual for Schedule 2 - Encashment Tax. The updated manual now incorporates guidance regarding encashment tax and US dividends and provides an example on how encashment tax is applied to US dividends. The previous guidance has been archived.

Revenue has updated the Stamp Duty Tax and Duty Manual for transfers of land under section 81AA SDCA 1999 to young trained farmers to reflect recent developments, including the extension of the relief to 30 June 2023. Further information is available in eBrief no.030/23.

The Minister for Finance, Michael McGrath, has announced the transfer of €4 billion from the Exchequer’s Central Fund into the National Reserve Fund. Commenting on the transfer, Minister McGrath said: “On Budget day, the government committed to putting aside additional resources, from excess corporation tax receipts to prepare the public finances for future challenges. This commitment was made while also providing over €11 billion in economic support to households and businesses in Budget 2023 to help individuals, families and businesses deal with the rising cost of living. While we have acted to deal with this immediate challenge, there are future costs which we must be prepared for including the consequences of an ageing population, the digital transition and climate change. Recent history has taught us that we must also be prepared for unforeseen challenges, which are becoming more frequent and increasingly impactful. The transfer of €4 billion to the National Reserve Fund today is an important step in that preparation. Today’s transfer comes after the €2 billion transfer made in 2022 and brings total transfers to the Fund since Budget night 2022 to €6 billion. This means that the NRF will have a strengthened position to respond to the type of unforeseen challenges that the Fund was established to deal with in 2019."

Revenue has written to taxpayers who are currently registered for Income Tax but have not filed Income Tax returns for years up to and including 2021 notifying them of their obligations, as chargeable persons, under self-assessment rules for Income Tax.  A chargeable person is obliged to file Income Tax returns and make payments, on or before 31 October each year.   Revenue advises that where a taxpayer is no longer a chargeable person, the taxpayer should cancel their Income Tax registration. This can be done online via ROS or by completing Form TRCN1 which is available on the Revenue website.  If the taxpayer continues to be a chargeable person, the notice is a final reminder to file the outstanding Income Tax returns.  If taxpayers do not file the outstanding Income Tax returns or cancel the registration within 21 days of this letter, Revenue will proceed to cease the Income Tax registration without further notice.  The notice will issue directly to taxpayers with no Agent copies issuing.

The deadline for making an Unprompted Qualifying Disclosure in relation to previously undisclosed Period 1 liabilities under the Debt Warehousing Scheme (DWS) is 31 January 2023. Revenue has updated its Tax and Duty Manual on the process for taxpayers making an Unprompted Qualifying Disclosure of previously undisclosed Period 1 liabilities. Such taxpayers have an opportunity to have those additional liabilities warehoused under the terms of the DWS. The updated guidance sets out the period within which taxpayers availing of Debt Warehousing must agree a Phased Payment Arrangement (PPA) for their warehoused liabilities.  

Revenue policy is that opinions/confirmations provided by Revenue are valid for a maximum period of 5 years. Revenue has updated its Tax and Duty Manual providing guidance to taxpayers who wish to continue to rely on an opinion or confirmation issued by Revenue in the period between 1 January and 31 December 2017 on or after 1 January 2023.   A taxpayer who wishes to continue to rely on an opinion/confirmation is required to make an application for its renewal or extension on or before 31 March 2023.

Revenue has updated the Income Tax (Employments) Regulations 2018 Tax and Duty Manual reflecting the changes made as a result of the Income Tax (Employments) Regulations 2022 S.I. No. 690 of 2022. These changes are operational since 1 January 2023 and amend the Income Tax (Employments) Regulations 2018 that prescribe the manner in which the deduction of tax from salaries and wages under the “Pay As You Earn” system operates. Further information is available in eBrief no.011/23.

Revenue has updated its Tax and Duty Manual for PAYE reviews where Week 53 applies to reflect the Finance Act 2022 changes:  Amendment to section 480B TCA 1997, to provide that the Week 53 provisions apply to the Sea-going Naval Personnel Tax Credit with effect from 1 January 2023. Application of the Week 53 provisions to the income threshold applicable when determining if an individual qualifies for the Home Carer Tax Credit. However, as this treatment was applied previously by Revenue on an administrative basis, claimants will not see any difference in the tax treatment applicable to them on foot of this change.

Revenue has updated its Stamp Duty Tax and Duty Manual to provide information on how section 31C SDCA 1999 (shares deriving value from immovable property situated in the State) interacts with section 31E SDCA 1999 (stamp duty on certain acquisitions of residential property).

Revenue has updated the Stamp Duties Consolidation Act 1999 - Notes for Guidance  to include all amendments to the 1999 Act by subsequent Acts up to and including Finance Act 2022.

Revenue has updated several chapters of the Stamp Duty Tax and Duty Manuals. Further information is available in eBrief no. 016/23.