Dublin Tax Consultants
Residential Zoned Land Tax (RZLT)
Residential Zoned Land Tax (RZLT) – New Irish Tax – Finance Act 2021 – New Property Tax
On 19th July 2022 the Irish Revenue Commissioners published eBrief No. 148/22 in relation to Residential Zoned Land Tax (RZLT) which was a new Irish tax introduced by Finance Act 2021. It applies to owners of serviced and undeveloped land that has been zoned for residential use.
For full information please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-22a/22a-01-01.pdf
Residential Zoned Land Tax (RZLT) applies to land that, on or after 1st January 2022, is zoned as being suitable for residential development and is serviced, with certain exclusions.
It does not apply to existing residential properties.
Where land is within scope of the tax on 1st January 2022, the tax will be charged from 1st February 2024 onwards.
RZLT is an annual tax, calculated at 3% of the market value of the land within its scope.
Owners of residential properties with yards and gardens greater than 0.4047 hectares will be required to register for RZLT, but will not need to pay it.
Each local authority will be required to prepare and publish a map identifying land within the scope of the tax. This must be updated annually.
An owner of land which is zoned as being suitable for residential development and serviced on 1st January 2022 and where this development has not commenced before 1st February 2024 will be liable to file a return and pay the RZLT on or before 23rd May 2024, with certain exclusions.
Where land comes within the scope of the RZLT after 1st January 2022, the tax will be first due in the third year after it comes within scope.
The tax will continue to be payable each year in respect of the land unless a deferral of the tax applies or the land ceases to be liable to the tax.
RZLT will operate on a self-assessment basis.
From 2024 onwards, owners of the land in scope will be required to register for RZLT and then (i) make an annual return to Revenue and (ii) pay any tax liability in May of each year.
Interest, penalties and surcharges will apply in cases of non-compliance, including undervaluation of the land in scope and late filing of returns, etc.
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Income Tax – Maternity Benefit, Adoptive Benefit and Health & Safety Benefit
Income Tax. Personal Tax on benefits. PAYE Employees
Taxation of Maternity Benefit, Adoptive Benefit and Health & Safety Benefit
From 1st July 2013 the following payments by the Department of Social Protection will be liable in full Income Tax. Revenue published a guidance material leaflet on the Income Tax treatment of a range of benefits for PAYE taxpayers.
From 1st July 2013 the following payments by Department of Social Protection will be taxable in full:
- Maternity Benefit
- Adoptive Benefit
- Health & Safety Benefit
It is important to remember that USC and PRSI will not apply to these benefits.
How will this new system work?
The Department of Social Protection, as part of an ongoing exchange of information with Revenue, will provide Revenue with all payment details to update the tax payers’ records.
Individuals who pay their tax through the PAYE system will, where possible, have their annual tax credits and cut-off point reduced by the amount of these payments so as to avoid any underpayment of taxes at the year end.
Employers and pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates.
It is important to keep in mind that DSP payments for periods up to 1st July 2013 remain exempt from Income Tax, USC and PRSI.
For further information, please click: https://www.revenue.ie/en/jobs-and-pensions/taxation-of-social-welfare-payments/maternity-adoptive-health-safety-benefits.aspx
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.