I am advised by Revenue that Professional Services Withholding Tax (PSWT) is a deduction at source that is applied to certain payments made by bodies listed in legislation to professional service providers. Tax is deducted at the standard income tax rate, currently 20%. It should be noted that PSWT is not an additional tax. It is instead a payment on account, which is set against the final Income Tax or Corporation Tax liability of the service provider. This is the basis on which PSWT is applied to payments made by the HSE to dentists for the provision of dental services.
There is a wide range of bodies which deduct PSWT and an equally wide range of payments for professional services to which it applies. In these circumstances, it would not be appropriate to suspend the operation of PSWT by one entity for the provision of one particular service.
However, the legislation governing PSWT does provide for the Revenue to make interim refunds, in specified circumstances, within the same tax year as that in which the PSWT is deducted.
I am further advised by Revenue that special arrangements have been put in place to accelerate the processing of interim refunds during the Covid-19 pandemic.
These new arrangements provide for the submission of these claims electronically through Revenue’s MyEnquiries service and this will speed up the provision of refunds to applicants.
To accelerate interim refunds of PSWT Revenue will accept refund claims via MyEnquiries where legible copies of the original F45 and F50 documents are attached. Refunds will be processed on this basis without the requirement to be supported by original F45 documents. All original F45 documents will need to be retained as there will be checks at a future date.
Additionally and in a situation where the relevant F45 form cannot be issued to the specified person due solely to the current Covid-19 circumstances then, for the purposes of attachment to a MyEnquiries refund claim, a written statement issued by the accountable person to the specified person setting out the relevant information will suffice.
Full details of these Covid-19 interim arrangements are available on the Revenue website at www.revenue.ie/en/corporate/communications/covid19/revenue-services.aspx.
All requests for refunds will be given priority attention once received by Revenue