Revenue eBrief No. 199/22

21 November 2022

Non-resident corporate landlords within the charge to corporation tax

The following Tax and Duty Manuals (TDMs) have been updated to reflect changes introduced in Finance Act 2021 to the taxation of non-Irish resident corporate landlords in receipt of Irish rental income.

  • TDM Part 02-02-01 - Corporation Tax - General Background - has been updated in section 1,
  • TDM Part 02-02-02 - The charge to and rate of Corporation Tax - has been updated in section 3,
  • TDM Part 02-02-04 - Certain non-resident companies within the charge to Corporation Tax (section 25 TCA 1997) - has been updated in sections 1, 2 and 3,
  • TDM Part 02-02-05 - Corporation Tax - General Scheme, Scope of charge and Basis of assessment - has been updated in section 1, and
  • TDM Part 02-02-08 - Corporation Tax/Capital Gains Tax interaction - has been updated in section 2.

These corporate landlords are subject to corporation tax rather than income tax on Irish rental income from 1 January 2022.  In addition, from 1 January 2022, a gain on the disposal of an asset by a non-resident company, the profits or gains from which were chargeable to tax under Case V of Schedule D, is within the charge to corporation tax rather than capital gains tax. The only exception to this rule is where a gain is realised on the disposal of development land, in which case the gain is within the charge to capital gains tax.