Non-resident landlords

If a tenant withholds tax

Note

The details and procedures below have been changed from 01 July 2023. Further details on this change can be found in Non-Resident Landlord Withholding Tax (NLWT).

If your tenant withholds 20% of the rent due, they need to submit that to Revenue’s Collector-General. To submit the withheld tax, they will need to complete Form R185. They should submit a copy of this form to Revenue and provide you with the original.

The Form R185 will show how much tax was paid to Revenue. You can claim the withheld tax as a tax credit on your Income Tax Return. This can be done assuming all obligations are met, and the tax was deducted and remitted to Revenue by the tenant.

Tenants renting from a non-resident landlord

If you do not engage a collection agent, you may have your tenant withhold the tax due from the rent.

Your tenant needs to:

• deduct 20% of the total rent due and complete Form R185
• send the payment and a copy of the completed Form R185 to Revenue
• pay you the remaining 80% of rent due and send you the original completed Form R185
• account for the tax immediately after it is deducted. Your tenant can do this by:
  • sending the tax deducted to Revenue's Collector-General's Division over the course of the year
  • having the tax collected over the year by adjusting their tax credits, if their only income is from Pay As You Earn (PAYE) income
  • or
  • sending the tax deducted from the rent when filing their Income Tax Return. A PAYE only taxpayer will need to submit a Form 12 Income Tax Return. A self-employed taxpayer (a chargeable person) will need to submit a Form 11 Income Tax Return.

Note

If your tenant deducts the tax on the payment of rents, it does not make them a chargeable person. The tax that is required to be deducted and paid cannot be offset against your tenant’s own Income Tax liability.

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