Prepayments on rental income or sales profits
Prepayments refer to advance taxes that must be paid on various types of income, including rental income, capital gains on assets and income from foreign sources (such as pension income). Prepayments must be paid if tax is not withheld directly from the income. “Prepayment” is therefore not the same as the amount withheld from your wage income, etc. based on the tax rate shown on your tax card.
You can request prepayments, changes to your prepayments or cancellation of prepayments during the tax year. You can request and pay an additional prepayment from December in the tax year up until the completion of your tax assessment.
The minimum prepayment amount is €170. If your calculated prepayment amount is less than €170, you do not have to pay it in advance but it will be included in your regular tax assessment.
The due date for prepayments is the 23rd of the month. If the 23rd does not fall on a banking day, the due date is the next business day.
Instructions for different situations
You can request prepayments, changes to your prepayments or cancellation of prepayments up until the completion of your tax assessment. Your prepayment instalments remain in effect until you receive a new decision. If you have not received a new decision by the due date, pay the prepayment in accordance with the previous decision.
You can change your prepayment instalments in MyTax starting 27 November 2023 after you have received a decision on prepayments for 2024. For example, if instalments have been allocated to certain months but you would like to make prepayments evenly every month, you can change the instalments yourself. The selection remains in effect until further notice. In other words, any future prepayment instalments will be split into equal-sized monthly instalments.
See the guidance: How to request or change prepayments in MyTax
You can also use these paper forms:
Additional instructions on the following types of income:
- Rental income
- Profit from sales of apartments
- Profit from sales of investments (such as shares and fund units)
Business income is also subject to tax prepayment. Read more about prepayments related to business operations.
If you have paid too little in prepayments, you can make an additional prepayment
If you notice that you have not paid enough tax (year 2023), you can make an additional prepayment.
If the due date for the additional prepayment is in January, you do not have to pay late-payment interest with relief. If the additional prepayment you make is sufficient, you do not have to pay back taxes.
Read more about how to make an additional prepayment
Example: You sold corporate shares on 15 November 2023. Your profit from the sale was €2,000. You want to take care of the related income tax as soon as possible. To do so, submit a request for an additional prepayment as of 7 December 2023. When both the additional prepayment’s due date and the date when you actually pay it are in January, there are no consequences of late payment.
If the due date is in February or later, or if you choose to pay a back tax in order to cover the income tax related to the profit, you must also pay late-payment interest with relief.
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