Local Property Tax (LPT) – Revenue Briefing to employers on deduction at source from wages/salary or an occupational pension – 24th April 2013.

In a Briefing for employers about the Local Property Tax (LPT)  and the deduction of LPT through salary and pensions yesterday, Revenue have advised that legislation governing Local Property Tax (LPT) provides for payment by a liable person of LPT for 2013 in one single payment or by phased payments over the period July to December 2013. One of the phased payment options provided for in legislation is deduction at source from wages/salary or an occupational pension.

Employers/pension providers will be required to make this facility available to their employees/pension recipients from July 2013 onwards. Where deduction at source is the means by which Local Property Tax (LPT) is to be paid, Revenue will notify the employer/pension provider via the employer’s/pension provider’s copy Tax Credit Certificate (P2C) to deduct Local Property Tax (LPT) from the employee’s net salary or pension recipient’s occupational pension as appropriate. The employer/ pension provider must commence deductions of Local Property Tax (LPT) on receipt of the P2C but no earlier than 1 July 2013 and spread these deductions evenly over the pay periods occurring between July and December 2013. They will be required to account for and remit the deducted LPT to Revenue on Forms P30 and P35, and to employees on payslips, P60’s and P45’s as appropriate.

For further information on how deduction at source from wages/salary and occupational pensions will operate, please read Revenue’s Frequently Asked Questions (FAQs) for employers and pension providers or contact the Employer Helpline at 1890 25 45 65.

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