Platform workers and, or service providers

Implications for you of eWHT

  • You will become a Specified Person (SP) for eWHT.
  • You will be taxed in a real time manner via the eWHT regime. This means that payments you receive from the platform will have an amount of tax deducted at source.
  • Every time you are paid the Designated Withholder (DW) will withhold an amount of tax. They will send it to Revenue on your behalf.
  • The amount of tax withheld will be calculated using:
    • 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 intended that your DW and Revenue will communicate in real time about the payment due to you and the rate of withholding tax to be applied to your payments.
  • The tax withheld will be credited to your income tax/corporation tax account.
  • You will have the ability to advise Revenue of your other incomes and expenses. While optional, reporting will increase the accuracy of your PDR. The more you engage, the more accurate your PDR will become.
  • If you have a tax agent, they will be able to interact with Revenue on your behalf.

Benefits

  • Integrating tax into how you get paid will increase the accuracy of data, reduce errors and reduce effort for you.
  • Improved accuracy of data will make it easier for you to manage your taxes.
  • Your income tax return will be simpler, we will pre-populate it with the information we have.
  • For individuals, PDR means the rate applied to your payments is unique to you. This will help you more accurately manage your financial affairs.
  • PDR will help you to pay as you go and reduce or eliminate preliminary tax lump sum payments.
  • You will be able to inform a more accurate PDR by engaging with Revenue.
  • For corporates/partnerships and other entities, a new flat rate of deduction will apply. This will provide an opportunity to pay as you go.
  • eWHT will help reduce the administrative burden associated with the self-assessment process and reduce the end of year tasks.

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

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