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Ireland's Revenue Chair Offers Property Tax Update

Friday, 31 May 2013   (0 Comments)
Posted by: Author: Jason Gorringe
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Source: Jason Gorringe (, London)

"The outcome of the voluntary phase of Local Property Tax (LPT) has been extremely successful," the Chairman of Ireland's Revenue Commissioners has said.

Announcing the initial administrative details of Ireland's controversial new tax, Josephine Feehily calculated that over EUR100m in revenue has been generated so far.

The LPT will enter into force from July 1. It will be charged at 0.18 percent of the market value of properties worth up to EUR1m (USD1.3m), and at 0.25 percent on any excess value over EUR1m. Property values are organized into a number of bands – from EUR0 to EUR100,000 and then in EUR50,000 bands. The tax liability is calculated by applying 0.18 percent to the mid-point of the relevant band.

The initial valuation of the property on May 1, 2013 will be the value of the property for LPT purposes up to and including 2016. The 0.18 percent rate is fixed for the lifetime of the current Government, but a "local decision factor," allowing local authorities to vary the rate by up to 15 percent, will apply from 2015.

The levy will be administered by the Revenue Commissioners, but is self-assessed. Householders are required to decide on the value of their property, file a return, choose a payment option and send the payment to the Revenue.

The Commissioners' LPT Register was compiled from several databases, while LPT Returns, personalized letters and LPT Guides were sent to just over 1.69m residential properties. According to Feehily, LPT Returns have now been filed in respect of 1,517,902 properties. Including properties where local authorities or social housing groups are liable, and where special payment provisions are to be enforced, there have been nearly 1.68m cases of voluntary compliance.

Approximately 22 percent filed a paper return, while 73 percent did so online, and a further 5 percent by telephone or through the local tax office network.

Feehily explained that: "The next steps in this project include activating the various payment options chosen, including by sending files to employers and the relevant Government Departments to begin LPT deductions at source. We are now moving quickly into compliance mode and have already begun to identify the non-engagers for follow up action. We owe no less to all the compliant taxpayers who have voluntarily filed their returns."



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

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