Individuals other than the self-employed or company director are required to file a tax return* (Form 11) if they have non-PAYE income and/or profited from share options or share incentives. Some examples of non-PAYE income are rental income, investment income, foreign income, maintenance payments and fees that are exempt from PAYE.
The deadline regarding non-PAYE income and profits from share options/share incentives is 31 October. By this date, you are required to:
- Calculate and pay preliminary tax for income tax (IT) for the current tax year. There are three methods to calculate the preliminary tax as shown below. The method chosen can help you in managing your cash flows:
- 90% of the estimated tax for the current year
- 100% of tax due for the previous year
- 105% of tax due for the pre-preceding year. This option only applies if you pay by direct debit and tax due for the pre-preceding year was not nil.
- File your tax return (Form 11) and and self-assessment for IT for the previous year AND pay any balance of tax due for the previous year.
To illustrate the above, by 31 October 2018, a person with non-PAYE income is required to pay preliminary tax for 2018, file tax return for 2017 and pay any balance of tax due for 2017.
* If you are taxed under PAYE, your taxable non-PAYE is not more than €5k and gross non-PAYE income is not more than €30k, you are advised to submit a Form 12 instead.