Withholdings and payment on account
What they are, when you should apply them and your obligations as a withholder
Advance payment of deductions for a principal residence
If you are an employed worker, you can request a reduction of two integers in the withholding rate applicable to your work income provided that:
the total amount of your full remuneration for work income from all your payers is less than €33,007.20 per year;
you make payments for loans intended for the acquisition or rehabilitation of your primary home (expansion or construction is not contemplated);
you are entitled to the deduction for investment in habitual residence;
communicate this situation to your payer (you can use Form 145);
and, the withholding rate is not negative as a consequence of the reduction.
If you are the payer of employment income, you will have to take this into account to calculate the withholding that you must apply to your employees.
Presentation deadlines and effects
You can communicate from the moment you allocate amounts to the acquisition or rehabilitation of your habitual residence.
The regularization of the withholding rate will take effect from the date on which you communicate it and, as long as there are at least 5 days left to prepare the payroll.
You do not have to repeat this communication in each exercise unless there are variations in the data that you have initially communicated.