Private Residential Leases (Tax Rebate) Rules, 2020

L.N. 258 of 2020

INCOME TAX ACT

(CAP. 123)

INCOME TAX MANAGEMENT ACT

(CAP. 372)

Private Residential Leases (Tax Rebate) Rules, 2020

IN EXERCISE of the powers conferred by articles 31D and 96 of

the Income Tax Act and articles 42 and 58 of the Income Tax

Management Act, the Minister for Finance and Financial Services has

made the following rules:-

The title of these rules is Private Residential Leases (Tax

Rebate) Rules, 2020.

In these rules, the terms "Authority", "private residential

lease" and "long private residential lease" have the meaning assigned

to them in the Private Residential Leases Act.

These rules apply to income derived on or after 1 January

2020 from a private residential lease with a duration of two (2) years

or more that is registered with the Authority as a long private

residential lease in accordance with the Private Residential Leases Act.

For the purpose of these rules the duration of a lease shall

be ascertained by reference to the original period as agreed in the

relative contract and no regard shall be taken of any period of renewal

or extension of the original period.

(1) Subject to the other provisions of these rules, a person

who, in the year immediately preceding the year of assessment, derives

income to which these rules apply and who, for that year of

assessment, exercises the option referred to in article 31D(2) of the

Income Tax Act, shall be entitled to a tax rebate.

(2) The rebate shall be granted in the form of a deduction from

the tax chargeable in terms of article 31D of the Income Tax Act on the

rental income from each relevant private residential lease, to the extent

that it represents income to which these rules apply, and shall be

determined by reference to the duration of that lease and the number of

bedrooms of the leased premises as stated in the contract as provided

in the following table and in the other provisions of this rule

Duration of the lease

Number of bedrooms

Tax rebate

At least two years but less than three

One

€200

Two

€300

years

Three or more

€400

Three years or more

One

€300

Two

€400

Three or more

€500

(3) In respect of the year during which a lease commences or is

terminated, the rebate shown in the last column of the above table shall

be reduced pro rata to the number of days for which the lease is in

force for that year.

(4) The rebate for any year in respect of a lease cannot exceed

fifteen percent (15%) of the rent derived in that year from that lease.

A claim for the tax rebate allowable under these rules shall Claim.

be made on the form prescribed under article 42(4)(c) of the Income Cap. 372.

Tax Management Act and shall be submitted together with the

payment of the tax due in terms of these rules and article 31D of the

Income Tax Act.

The Authority shall, by not later than the 31st January of Information to

each year, furnish the Commissioner with a list of every long private be

the Authority.

residential lease contract for a duration of at least two (2) years that

was registered with it, by the lessor or the lessee, as the case my be, in

accordance with the Private Residential Leases Act as at the 31st Cap. 604.

December of the preceding year indicating, with respect to each

contract, and on the basis of the information made available to it, the

date of the commencement of the lease, the annual rent and the amount

of the rebate calculated in accordance with rule 5.

The Commissioner may require such further information Further

and may make such enquiries, including enquiries with the Authority, information.

as he may consider necessary in order to confirm the validity and the

correctness of a claim for a rebate under these rules and he may refuse

a claim in any case where he has reason to believe that any of the

conditions for the rebate has not been satisfied.

If it results to the Commissioner that a rebate granted to a Forfeiture of

person under these rules was not actually due, he may request that rebate.

person to pay an amount of tax equivalent to that rebate. Upon the

service on that person of a notice of such a request, that person shall

become liable to pay to the Commissioner the said amount with

interest which shall run as from the 1st May of the yea of assessment

for which the rebate was granted, without prejudice to the provisions

of article 51 of the Income Tax Act and to any penalty for which that Cap. 123.

person may be liable in accordance with any provision of the Income

Tax Acts.

A person who wishes to dispute a request for payment

made in terms of rule 9 shall have the right to file an objection and an

appeal in accordance with the provisions of the Income Tax

Management Act in the same manner and to the same extent as if that

request were an assessment made under article 31 of that Act.

The Letting of Tenement (Forms) Rules, hereinafter

referred to as the "principal rules", shall be amended as follows

(a)

rule 2 of the principal rules shall be substituted by

the following rule

" Form to

2. The payment to be made by a

accompany

person in terms of article 42(4)(c) of the

payment.

Income Tax Management At shall be

accompanied by the form, duly filled in, that

is published by the Commissioner for the

purpose of these rules on the official website

of the Commissioner for Revenue."; and

(b)

Schedule A to principal rules shall be deleted.

€0.27