Private Residential Leases – Tax Rebate
The Private Residential Leases (TaxRebate) Rules, 2020 were published on 23 June 2020 (LN 258 of 2020).
The rules provide for a tax rebate (where the option under article 31D(2) of the Income Tax Act for taxation at 15% on the gross rental income has been exercised) in the form of a deduction from the tax chargeable on the qualifying rental income under article 31D of the Income Tax Act.
The rebate ranges from €200 to €500 but is capped at 15% of the rent derived from the lease.
The rules apply to income derived on or after 1 January 2020 from a private residential lease with a duration 2 years or more that is registered with the Housing Authority as a long private residential lease in accordance with the Private Residential Leases Act.