Retainable charge
Withholding tax from certain payments
You may have to withhold tax, at the standard rate of 20%, from certain payments. These payments include:
You must complete a Form R185 if you withhold tax from a payment.
The Form R185 confirms the Income Tax that was deducted. You must give this form to the person whose payment you have deducted tax from.
Note
From 1 July 2023, the obligation to complete a Form R185 no longer applies in respect of rent paid to a non-resident landlord. The requirement to withhold tax remains. Please see the NLWT Pages for further information.
Collection of withheld taxes
You may be a Pay As You Earn (PAYE) worker who has withheld tax from a payment you made. If so, you can contact Revenue to adjust your Tax Credit Certificate (TCC) to collect the tax withheld by you.
If you are a non-PAYE worker, you must register for self assessment and declare the gross payment.
Exemption or repayment of Irish tax on interest agreements
You may be tax resident in a country that has a Double Taxation Agreement with Ireland. If so, you may be able to claim an exemption or repayment of Irish tax on interest payments. You should complete a Form IC7 and attach the Form R185 you received from the person who withheld the tax.
Further guidance on completing a Form IC7, and the additional information you will need to submit with the claim, is available on the form.