The Non-Resident Landlord Withholding Tax (NLWT) is a tax system implemented to collect taxes from non-resident landlords who earn rental income in a particular jurisdiction, in this case Ireland and from July 1st 2023.  It is designed to ensure that taxes are withheld and remitted to the tax authorities by either the collection agents or the tenants of these non-resident landlords.

Under the NLWT system, when rent is paid to a non-resident landlord, the collection agents or tenants are required to make Rental Notifications (RNs) to the tax authorities. Along with this notification, they must withhold 20% of the rent payment and remit it to the tax authorities.

The withheld amount serves as a credit for the non-resident landlord when they submit their annual tax return. It is important to note that the NLWT system may have specific forms and procedures for reporting and compliance, such as Form 11 for individuals and Form CT1 for companies.

The purpose of the NLWT system is to ensure that non-resident landlords fulfill their tax obligations in the jurisdiction where they earn rental income, even if they are not physically present in that jurisdiction. By implementing this system, tax authorities aim to improve tax compliance and collect the appropriate amount of tax revenue from non-resident landlords.

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