Designated Withholder (DW)

Are you a:

• Principal contractor for Relevant Contracts Tax (RCT).
• Accountable person for Professional Services Withholding Tax (PSWT).
• A platform operator, where your platform facilitates services in any sector and the payment is routed from the recipient of the service by the platform operator to the service provider.

If yes, you will be a DW for eWHT.

What will a DW need to do?

A DW will:

• Notify Revenue in advance of making a payment to a Specified Person (SP).
• Receive from Revenue a withholding rate to be applied to the payment.
• Apply the rate to the payment to be made to the SP.
• Withhold tax from the payment to the SP.
• Remit the tax withheld to Revenue.

How will this work?

• It is proposed that communications between Revenue and the DW will be done via a suite of Application Programming Interfaces (APIs). This will be a real-time data exchange between Revenue systems and the DWs IT system.
• Using an API means that your IT system will interact seamlessly with Revenue. This will minimise the operational and administrative burden for you.
• Revenue will compile your monthly return based on this information exchange which you can accept or amend, if needed.
• Tax Agents will be able to carry out these functions on behalf of their clients.