Revenue eBrief No. 190/20

16 October 2020

Budget 2021 - Income Tax Warehousing

Budget 2021 announced the extension of the Tax Debt Warehousing Scheme to incorporate the balance due on 2019 income tax liabilities and 2020 preliminary tax.

The warehousing of income tax applies to any self-assessed taxpayer who expects their income for 2020 will be at least 25% lower than their income for 2019. In the case of taxpayers who were not chargeable persons in 2019, warehousing may apply to preliminary tax liabilities for 2020 where the taxpayer contacts Revenue advising that they are unable to pay their liabilities as a result of the impact of Covid-19 restrictions. 

Currently, ROS filers have until 10 December to pay and file their 2019 Form 11 and to pay preliminary tax for 2020. This deadline now also applies to ROS filers who wish to avail of the Debt Warehousing Scheme.

Where there is an underpayment of preliminary tax for 2019, then the balance for the year cannot be warehoused but can be concessionally included in a 3% reduced interest phased payment arrangement if the taxpayer agrees this with Revenue no later than 10 December 2020.