The Private Residential Leases (Tax Rebate) 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 taxed in terms of 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 of 2 years or more, which lease is registered with the Housing Authority as a long private residential lease in accordance with the Private Residential Leases Act.
For more information, please contact our firm’s Tax Team on tax@fenlex.com.
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