Irish Revenue Commissioner Penalties for Late Filing & Payment of Capital Gains Tax

  • By: Walter Dunphy ACCA
  • Date: February 11, 2022
  • Time to read: 3 min.

In this blog post, we will cover the important dates you need to be aware of for Capital Gains Tax in Ireland as well as what the penalties are for investors if they are late making the payment or else filing the relevant forms.

Profits that have been realised will be taxed at a Capital Gains Tax rate of 33% in Ireland. Individuals are also entitled to an annual exemption of €1,270 which can be deducted from your realised profits before calculating the tax due.

Do I have you pay Capital Gains Tax immediately in Ireland?

Let’s now go over the important dates you need to be aware of for capital gains tax. There are different deadlines for paying the tax and filing the capital gains tax returns.

Payment Dates:

For all profits made between the 1st of January and the 30th of November, you must pay any taxes due for that period by the 15th of December.

For all profits made between the 1st of December and 31st of December, you must pay any taxes due for that period by the 31st of January.

Where you make these payments will depend on whether you are a chargeable or non-chargeable person.

A non-chargeable person is someone who has a PAYE source of income and their non-PAYE income does not exceed €5,000 in the year. Whereas, a chargeable person will have €5,000 or more non-PAYE income in a year.

Non-chargeable persons can make capital gains tax payments through their ‘My Account’ on Revenue.ie. This feature may need to be there by default and you may have to contact Revenue to activate it.

For chargeable persons, the payment can be made through Revenue Online Services (ROS).

Filing Dates:

Capital Gains Tax (CG1) or Income tax returns (Form 11/12) must be filed with the Revenue Commissioner by the 31st of October in the year following the income/profits being earned. For example, realised capital gains made in 2021, the capital gains tax return will need to be submitted at the latest 31 October 2022.

This can be a point of confusion for many as you actually are due to pay the capital gains tax before submitting the capital gains tax return.

What are the penalties for late payment of Capital Gains Tax in Ireland?

If you are late making the payment of any capital gains tax, the Revenue Commissioner will apply a daily interest rate of 0.0219% to the tax that is due. This works out to approximately 8% per annum.

What are the penalties for late filing of Capital Gains Tax in Ireland?

If you are late filing your tax return (CG1 / Form 11 / Form 12) a surcharge will be applied. This surcharge is then added to your liability. The size of this surcharge will depend on how late the filing is.

  • 5% where the return is submitted within two months
  • 10% for any filings later than 2 months.

Conclusion

Paying your capital gains taxes and filing the relevant forms on time is important to avoid costly interest and surcharges. If you were one year late making your tax payment your tax bill would face additional charges and interest of 18%. Depending on the size of the bill this could add up to a material sum of money.

Previous Post

The Restrictive Irish Tax Rules on ETF Losses – Explained

Next Post

How Do You Calculate Benefit in Kind (BIK) on a Directors Loan in Ireland?

%d bloggers like this: