Directors and their jointly assessed spouses or civil partners are generally chargeable persons for self-assessment purposes so must file an Income Tax return, other than where a company meets the following conditions during the three years ending on 31 December in the tax year for which the exception is to apply –
- it was not entitled to any assets other than cash on hands or money on deposit not exceeding €130
- it did not carry on a trade, business or other activity including the making of investments and
- it did not pay any charges on income
However non-proprietary directors –
- who are not otherwise chargeable persons, and
- all of whose income, including fees, benefits and distributions is subject to tax directly or indirectly under PAYE
are not required to file an annual return of income under self-assessment for any tax year in which they meet these conditions. This approach is subject to review by Revenue.
A “proprietary director” is a director of a company who is the beneficial owner of, or is able either directly or indirectly to control, more than 15% of the ordinary share capital of the company.
A non-proprietary director is a director other than a proprietary director.