PSWT accountable persons

Implications for you of eWHT

  • If you are currently an accountable person for PSWT, you will be become a Designated Withholder (DW).
  • You will have to operate the eWHT system.
  • PSWT system will no longer be operated.
  • The existing flat rate deduction of 20% will no longer apply. It will be replaced by:
    • a personalised deduction rate for payments to individuals
    • and
    • a new lower flat rate deduction for payments to a corporate, partnership or other entity.
  • Payment Notifications will now be sent in advance of you making a payment.
  • 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 will 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.
  • Revenue will compile your monthly return from information sent to us. You may amend or accept by 23rd of the following month.

Some certainties

  • eWHT will apply to the same range of accountable persons as PSWT does now.
  • eWHT will apply to the same range of services as PSWT does now.
  • Send Revenue the tax you have withheld from payments by 23rd of the following month.
  • The annual return will no longer be required.
  • This model will interact seamlessly with your natural systems and will minimise your operational and administrative burden.
  • Tax agents acting for PSWT accountable persons will be able to continue acting on their behalf 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 significantly streamline your business processes and reduce your administrative burden.
  • Your withholding tax reporting obligations will be integrated into your normal payment process.
  • Where you are currently also a principal for RCT, you will operate one aligned withholding tax.
  • You will automatically receive an end of month reconciliation from Revenue.
  • The annual return will no longer be required.
  • Integration of tax into your payment process will increase the accuracy of the data, preventing costly and time-consuming errors.

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

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