Do all directors have to file tax returns?
Directors who own more than 15% of the share capital of an Irish Limited Company (AKA proprietary directors) need to file a director’s income tax return. This is the case whether you take money from the company or not.
The director’s tax return is a declaration of a director’s personal income including income from their company (salary and dividends), rental income or foreign income.
All Irish resident and non-resident proprietary Directors are legally required to submit a director’s tax return by 31st October each year. This can be extended to mid-November if you use Revenue’s Online System (ROS) to pay and file the tax return.
In general, non-proprietary directors are exempt from filing director returns in Ireland. If you need help filing your tax returns, talk to our Client Services about getting a quote for our accountancy services.
Extension of pay & file deadline for ROS customers
Revenue announces an extension of pay & file deadline for tax returns in an eBrief several months before the director’s tax return deadline.
For example, the pay & file deadline for 2021 was extended to November 19th, 2021. This meant that businesses had an additional 19 days to make the appropriate tax return and payment online.
The only downside is that you need to ensure you can file and pay on or before this date. The extension does not apply if you cannot complete both at the same time. So in these cases, the deadline will remain on 31 October.
Filing director's returns in your first year after incorporation
In your first year as a director of a company, you don’t have to file a director’s return. This is because your return is be based on income earned as a director from the previous year.
Instead, you will file your first return in October of your first full year as a company director.
For example, if you incorporate your company in February 2022, you should file your first director’s return in October 2023.
What information is required for a director's tax return on ROS?
A. Personal Details
B. Income from Trades, Professions or Vocations
C. Irish Rental Income
D. Employments, Offices, Pensions, directorships, etc
E. Foreign Income
F. Income from Fees, Covenants, Distributions
G. Exempt Income
H. Annual payments, Charges and Interest paid
I. Claim for Tax Credits, Allowances, Reliefs and Health Expenses
J. High-Income Individuals
K. Capital Acquisitions
L. Capital Gains
M. Chargeable Assets Acquired
N. Property-Based Incentives
You’ll also need:
- Your digital ROS certificate to log into your account
- Your bank details (IBAN), so any repayment of tax due will be paid into that account
- Personal Public Service Number (PPSN) and date of birth
If you need help filing a tax return get in touch with our Client Services Team. Our accountants have years of experience helping directors file accurate director’s tax returns. We’re here to ensure you’re tax compliant and availing of all your appropriate tax credits and reliefs.
Personal Public Service Number (PPSN)
Both resident and non-resident directors are required to have a Personal Public Service Number (PPSN). Your PPSN is a unique reference number that helps you access social welfare benefits, public services and information in Ireland.
A PPSN can be requested from the Department of Employment Affairs and Social Protection. Having a PPSN will allow non-resident directors to submit their director’s tax return.
Accountant Online now offers a PPSN application service for non-Irish resident director accountancy clients. Allow our professional and friendly team to organise, send and file your application for your PPS number.
Filing director returns in Ireland
The tax return system is based on a self-assessment regime so directors need to calculate their own tax liability and submit the return form to Revenue. You can also outsource to a tax agent, which will be discussed below.
The tax return form is called a form 11 and it is due on 31 October unless filing and paying through ROS. Any tax due (including preliminary tax) is then paid to Revenue.
Director’s tax return with income
Proprietary directors need to file tax returns if they received any income over the last year. For example, when you file your 2022 tax return, you will be reporting on your 2021 income. Types of income included on a tax return include salary (from the company and/or other employment), dividends, rental income, capital gains and foreign income.
Speak to our Client Services Team about what accountancy services you need as an Irish company director.
Director’s tax return with no income
If you have received no income over the last year, directors still need to file director’s tax returns. These are sometimes called Nil returns and the deadline to make these submissions is 31 October unless using ROS.
If you are late or file your return incorrectly, you may be liable to surcharges and interest. This also applies to Nil returns which means you may have to pay penalties even if you don’t owe any tax. It’s not uncommon for new company directors to forget to file director’s returns so make sure you know all your important deadlines when setting up a company in Ireland. Check out our What Does a Company Director Do? post for more information.
Using a tax agent to help file tax returns
A tax agent can help you file your tax returns by using their own ROS digital certificate and ROS password to access your account. They do not have access to your personal ROS login details.
Accountant Online are tax agents and we can help you file director’s tax returns.
To do this we need to complete an Authorisation Form, also known as an Agent Link. Clients of Accountant Online can sign Agent Links digitally through our exclusive client profile area. It is a digital process and we take care of everything in a quick, efficient manner.
There are two types of forms:
- Authorisation Form PAYE A1. This allows a third party (e.g. Accountant Online) to act as your tax agent.
- Authorisation Form PAYE A2. This allows a third party to act as your tax agent and to receive any refunds on your behalf.
What does a tax agent do?
Having a tax agent means they will act on your behalf with Revenue.
Your tax agent can carry out the following functions:
- Access your Revenue records
- Submit tax returns on your behalf
- Receive correspondence from Revenue in relation to any returns submitted
- Receive any refunds from Revenue in relation to any returns submitted. This only applies where an Authorisation Form PAYE A2 was completed.
Generally, we use the Authorisation Form PAYE A1 with all our accountancy clients. This means that you will receive your tax refund directly into your bank account. If you would like a quote for Accountant Online to take care of your tax requirements, get in touch with our Client Services Team. We can send you a quotation today.
What do I need to do next?
If you need help filing your next director’s tax return or have any questions about your compliance and tax obligations get in touch with our Client Services Team.
We are always happy to talk you through the services you need to ensure your company remains compliant with Revenue and the Companies Registration Office.
Kiera leads the Bookkeeping, VAT, and Payroll Teams at Accountant Online. Kiera has worked in the financial services industry for over 18 years. She is passionate about helping businesses to get their finances in order so they can get back to what’s important: running your business. Kiera holds a part-qualified accountant qualification from ACCA.