PRIVATE RESIDENTIAL LEASES (TAX REBATE) RULES

PRIVATE RESIDENTIAL LEASES

(TAX REBATE)

SUBSIDIARY LEGISLATION 372.30

PRIVATE RESIDENTIAL LEASES

(TAX REBATE) RULES

23rd June, 2020

LEGAL NOTICE 258 of 2020.

The title of these rules is Private Residential Leases (Tax

Rebate) Rules.

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

Tax

bedrooms

rebate

At least two years but less than

One

€200

Two

€300

three 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

PRIVATE RESIDENTIAL LEASES

(TAX REBATE)

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 be made on the form prescribed under article 42(4)(c) of the

Income 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

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

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

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

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

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

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

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 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