Who Needs To File An Income Tax Return?

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Who Needs To File An Income Tax Return?

We have received many queries in the early months of 2023 from people who have received notifications from revenue requesting a form 11 and some are unsure if they are legally required to complete and file with revenue. The below summary should help people to work out their requirements.

Who is a Chargeable Person (and required to complete a form 11):

  • Self Employed individuals and directors with more than 15% shareholding in a company are chargeable people.
  • An individual who receives PAYE Income and non paye income greater than €5,000. It is important to note that the non-paye. income is net €5,000 for example it is rental profit and not just rental income. If the taxpayer receives €5,000 or less of additional income, they are still obliged to inform revenue of the same.
  • If an individual receives other non-paye income over €30,000 they are obliged to file a form 11.
  • An individual has no paid income but receives other non-paye income including dividends, deposit interest, rental income, covenants, estate income, maintenance payments, investment undertakings and untaxed income. This individual is obliged to file a Form 11.
  • A “proprietary director” is a director who is the beneficial owner of the company, or is able, either directly or indirectly, to control more than 15% of its ordinary share capital.
  • If an individual receives a share option, that individual is considered a chargeable person.
  • If an individual is in receipt of Foreign income chargeable to tax in Ireland then a form 11 is required.
  • If an individual opens a foreign bank account that is regulated by a foreign authority this may deem the individual a chargeable individual and therefore bound to file a Form 11.

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If you have any questions on the above, please book a no obligation call today.