Retainable charge

Withholding tax from certain payments

You may have to withhold tax, at the standard rate of 20%, from certain payments. These payments include:

• deeds of covenant
• rent to a non-resident landlord
• and
• annual payments, known as annuities - for example, royalty payments.

You must complete a Form R185 if you withhold tax from certain payments (deeds of convenant, annual payments).

The Form R185 confirms the Income Tax that was deducted. You must give this form to the person whose payment you have deducted tax from.

Note

From 1 July 2023, the obligation to complete a Form R185 no longer applies in respect of rent paid to a non-resident landlord. The requirement to withhold tax remains. Please see the NLWT Pages for further information.

Collection of withheld taxes

You may be a Pay As You Earn (PAYE) worker who has withheld tax from a payment you made. If so, you can contact Revenue to adjust your Tax Credit Certificate (TCC) to collect the tax withheld by you.

If you are a non-PAYE worker, you must register for self assessment and declare the gross payment.

Exemption or repayment of Irish tax on interest agreements

You may be tax resident in a country that has a Double Taxation Agreement with Ireland. If so, you may be able to claim an exemption or repayment of Irish tax on interest payments. You should complete a Form IC7 and attach the Form R185 you received from the person who withheld the tax.

Further guidance on completing a Form IC7, and the additional information you will need to submit with the claim, is available on the form.