Dáil Éireann Debate, Tuesday - 6 October 2020
284. Deputy Neale Richmond asked the Minister for Finance if he will consider implementing an optional 40% rate of automatic withholding tax for self-employed persons providing services to the State at the option of the taxpayer; and if he will make a statement on the matter. [28771/20]
View answerI assume that the Deputy is referring to Professional Services Withholding Tax (PSWT). PSWT was introduced in 1987 and is a withholding tax which provides for the deduction at source of tax at the standard rate of income tax (20%) from gross payments made by accountable persons for certain professional services.
Accountable persons include Government Departments and Offices, Local authorities, the Health Service Executive, authorised Health Insurers and commercial and non-commercial semi-State bodies and their subsidiaries.
The definition of professional services covers a wide range of services such as medical, architectural, engineering, financial, legal and geological services.
PSWT is an interim tax and PSWT deducted is allowed as a credit against Income Tax or Corporation tax of the individual or company that has suffered it.
As the Deputy may be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
