Platform Operators

Implications for you of eWHT

  • You will become a Designated Withholder (DW), if you are a platform operator that:
    • facilitates services in any sector
    • and
    • the payment for services is routed from the recipient of the service by the platform operator to the service provider.
  • You will have to operate the eWHT system.
  • In advance of making a payment to a Service Provider (SP) you will send a payment notification to Revenue. This will give details of the payment and details to whom the payment is being made.
  • Revenue will respond by sending you a deduction authorisation. This will state:
    • the rate of deduction to be applied to the payment
    • and
    • the amount of tax to be withheld.
  • The rate to be applied will be:
    • a Personalised Deduction Rate (PDR) for payments to individuals
    • and
    • a flat rate deduction for payments to a corporate, partnership or other entity.
  • It is proposed that you will send payment notifications to Revenue via an Application Programming Interface (API). This means your IT system will send this information as part of your payments process.
  • Revenue is planning to send you deduction authorisations via API. This means your IT system will receive the rate to be applied to the payment.
  • This will be a real time data exchange between your system and ours.
  • You will apply the rate to the payment and withhold the tax from the payment.
  • Revenue will compile your monthly return from information sent to us. You may amend or accept by 23rd of the following month.
  • You will send Revenue the tax you have withheld from payments by 23rd of the following month.
  • This model will interact seamlessly with your natural systems and will minimise your operational and administrative burden.
  • We will explore the interactions with your DAC7 reporting obligations with a view to minimisation of duplication of effort.
  • Tax agents who act for platform operators will be able to interact with Revenue in the new regime.

Benefits

  • eWHT will create a simplified and modern withholding tax framework across all self-employed withholding taxes. This will align with digital transformation goals and international best practices.
  • eWHT will allow you to streamline your business processes by integrating your eWHT obligations into your normal payment process.
  • You will automatically receive an end of month reconciliation from Revenue.
  • Integration of tax into your payment process will provide accurate information to Revenue.

We would like to get your feedback on what we are proposing.

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