COVID-19 information and advice for taxpayers and agents
Filing returns, paying taxes, loss relief, debt management and debt warehousing
ROS -Pay & File extension
Revenue has announced a further extension to the 2020 Pay & File deadline date for ROS customers due to the impact of Covid-19. The deadline for paying and filing taxes is now 10 December 2020. Full details are outlined in Revenue eBrief No. 174/20.
Filing Tax Returns
Taxpayers (individuals and businesses) should continue to file their tax returns even if payment of the resulting liabilities, in whole or in part, is not possible. Where, due to the virus, key personnel that compute tax returns are unavailable, we strongly advise that the relevant return is submitted on a ‘best estimate’ basis.
The application of a surcharge for late CT1 Corporation Tax returns for accounting periods ending June 2019 onwards (i.e. due by March 23, 2020 onwards) is suspended until further notice. Similarly, the application of a surcharge for late iXBRL financial statements for accounting periods ending March 2019 onwards (i.e. due by March 23, 2020 onwards) is suspended until further notice.
Where a CT1 Corporation Tax return, in respect of an accounting period ending June 2019 onwards and due by 23 March 2020 onwards -
- is filed late
- is not a return that is deemed to be filed late under section 1084(1)(b) TCA 1997
- the late filing is the result of COVID-19 circumstances,
the late CT1 return may be completed without the restriction of reliefs, such as loss relief and group relief, required by section 1085(2) TCA 1997.
There are a number of online payment methods available to make a payment to Revenue see online payment facilities.
For specific queries on payments please continue to submit your query through My Enquiries selecting the following:
- For ‘Enquiry relates to': Select ’Other than the above’ from the drop down menu.
- For ‘More specifically': Select ‘Revenue On-Line Service (ROS) Payments’ from the drop down menu.
- Please enter details of your enquiry (maximum 2,000 characters).
For information on how to amend or cancel a monthly direct debit payment, see Monthly direct debit. Alternatively, you can submit your request to amend or cancel a monthly direct debit payment via myEnquiries by selecting the following:
- For ‘Enquiry relates to': Select ’Collector-General’s ‘ from the drop down menu.
- For ‘More specifically': Select ‘Direct Debit’ from the drop down menu.
- Please enter details of your enquiry (maximum 2,000 characters).
Preliminary Income Tax Direct Debit taxpayers
Preliminary Income Tax direct debit taxpayers can elect to calculate their liability to preliminary tax based on 105% of the pre-preceding year’s Income tax liability. The conditions to avail of this concession are outlined in the Preliminary Income Tax direct debit page.
If you cancelled a monthly direct debit mandate during 2020, you can apply to re-enter the scheme. If you reduced or suspended your mandate, you may resume making normal payments. However, if your direct debit payments will not be sufficient to meet your preliminary income tax liability, you should make alternative payment arrangements.
Variable Direct Debit – Notice for Employers’ Income Tax/PRSI/USC/LPT payments
Routinely, payments for Employer Income Tax/PRSI/USC/LPT are debited on the third last working day of each month for both Fixed Direct Debit and Variable Direct Debit payments. However, where a variable direct debit fails due to insufficient funds, Revenue has suspended the process of issuing a further request for the payments until further notice. Should an employer wish to make a payment after the third last working day, they can avail of other online payment facilities. This temporary suspension came into effect from the March 2020 Variable Direct Debit payments onwards.
Employers should continue to report their payroll details each month to ensure that the filed/deemed return is accurate.
Temporary Income Tax relief for self-employed individuals carrying on a trade or profession
Section 10 of the Financial Provisions (Covid-19) (No. 2) Act 2020 provides for a number of temporary income tax measures to assist self-employed individuals who have been adversely impacted by the Covid-19 restrictions.
- Under the first measure, self-employed individuals can claim to have their 2020 losses and certain unused capital allowances carried back and deducted from their profits for the year of assessment 2019, thus reducing the amount of income tax payable on those profits. A €25,000 limit on the total amount that may be carried back will apply.
- The second measure allows for an acceleration of that relief by allowing self-employed individuals to make interim claims based on the estimated amount of relief available to them.
- The third measure gives an option to individual farmers to step out of income averaging for the tax year 2020, notwithstanding that the farmer may also have stepped out of income averaging in one of the four preceding tax years.
For an explanation on how the first two measures will operate in practice please refer to the manual:
While guidance on the income averaging measure for farmers is available in the manual:
Temporary acceleration of Corporation Tax loss relief
Section 11 of the Financial Provisions (Covid-19) (No. 2) Act 2020 introduced a new section 396D in the Taxes Consolidation Act 1997. Section 396D provides for a temporary acceleration of corporation tax loss relief for accounting periods affected by the Covid-19 pandemic and related restrictions.
It allows companies:
- to estimate their trading losses for certain accounting periods
- to carry back up to 50% of those losses against chargeable profits of the preceding accounting period on an accelerated basis.
The manual 'Corporation tax: Accelerated loss relief for companies adversely impacted by Covid-19 restrictions' (Part 12-03-05) provides:
- guidance on the operation of section 396D
- information to companies on how they may make a claim for the relief.
Tax debt - warehousing
In March 2020, Revenue suspended debt collection and the charging of interest on late payment for the January/February, March/April VAT and February, March, April PAYE (Employer) liabilities. May /June VAT periods and May and June PAYE (Employer) liabilities were subsequently included.
Revenue announced the warehousing of these tax debts in May 2020 and in July 2020, as part of the Business and Community Stimulus package, for all SMEs and business other than SMEs who are experiencing difficulties.
Reduced interest rate for outstanding 'non-COVID-19' tax debts
On 23 July 2020 as part of the Business and Community Stimulus package, the Government announced a reduced interest rate of circa. 3% per annum on non-COVID-19 related tax debts. Taxpayers who enter into phased payment agreements with Revenue no later than 31 October 2020 can avail of the reduced rate from the date of that agreement. The 3% rate represents a significant reduction from standard interest rates on late payment of taxes of 8% and 10% per annum.
Taxpayers who failed to meet 2019 Preliminary Tax obligations cannot warehouse their 2019 Income Tax balancing payment but can avail of the reduced rate phased payment arrangement for Income Tax 2019 liabilities, where the arrangement is made no later than 10th December 2020.
While taxpayers are advised to pay tax liabilities if at all possible, we recognise that tax payment difficulties are an inevitable impact of the COVID-19 pandemic.
To assist businesses who are experiencing tax payment difficulties:
- Warehousing of certain tax debts for SMEs was introduced.
- Businesses, other than SMEs, who are experiencing difficulties in paying their tax liabilities can contact the Collector-General’s office through MyEnquiries. Alternatively, these businesses can engage directly with their branch contacts in Revenue’s Large Corporates Division or Medium Enterprises Division.
- All debt enforcement activity is suspended until further notice.
* For tax purposes, an SME is a business with turnover of less than €3 million which is not dealt with by either Revenue’s Large Corporates Division or Medium Enterprises Division. SMEs are managed from both a service and compliance standpoint by Revenue’s Business Division.
It is important that businesses, which may be facing difficulty in paying their taxes for the first time, know that we will work with them to resolve their tax payment difficulties. With early and meaningful engagement, we can generally agree payment arrangements that are acceptable to both the business and Revenue.
Businesses can apply for a Phased Payment Arrangement online by using Revenue’s Online Phased Payment Facility which is accessible through ROS. The duration of the phased payment required will vary dependant on individual taxpayer circumstances. This can be set out by the applicant when the phased payment application is being made. The duration required will be reviewed by Revenue on a case by case basis and the taxpayer will be advised accordingly. This online facility is available 24/7 and affords businesses considerable flexibility to self-manage their tax payment schedule in line with business needs or temporary cash flow challenges.
For those businesses that have no capacity at present to pay their current taxes or meet the PPA obligations, the taxpayer may defer the PPA payment by one month via the online facility. Alternatively, a taxpayer may seek a deferral in excess of one month and such requests will be considered on a case by case basis.
Next: Compliance with certain reporting and filing obligations and the satisfaction of certain other tax-related conditions