On 21 November 2022, the Irish Revenue published eBrief No. 199/22 clarifying that corporate landlords are subject to corporation tax rather than income tax on Irish rental income from 1 January 2022. Accordingly, the following Tax and Duty Manuals (TDMs) have been updated to reflect changes introduced in Finance Act 2021 to the taxation of non-Irish resident corporate landlords in receipt of Irish rental income.

  • TDM Part 02-02-01 – Corporation Tax – General Background – has been updated in section 1;
  • TDM Part 02-02-02 – The charge to and rate of Corporation Tax – has been updated in section 3;
  • TDM Part 02-02-04 – Certain non-resident companies within the charge to Corporation Tax (section 25 TCA 1997) – has been updated in sections 1, 2 and 3;
  • TDM Part 02-02-05 – Corporation Tax – General Scheme, Scope of charge and Basis of assessment – has been updated in section 1; and
  • TDM Part 02-02-08 – Corporation Tax/Capital Gains Tax interaction – has been updated in section 2.

In addition, from 1 January 2022, a gain on the disposal of an asset by a non-resident company, the profits or gains from which were chargeable to tax under Case V of Schedule D, is within the charge to corporation tax rather than capital gains tax. The only exception to this rule is where a gain is realized on the disposal of development land, in which case the gain is within the charge to capital gains tax.