Professional Services Withholding Tax (PSWT)
Credit for PSWT deducted
Using PSWT as a credit
You can use PSWT as a credit against the amount of tax you owe for that tax year or accounting period.
You must pay Preliminary Tax to the Collector General by 31 October for that tax year, or the accounting period in question. PSWT cannot be used as payment, or part-payment, of the Preliminary Tax you owe.
- Example
Jack estimates that the Income Tax chargeable for 2023 is €40,000.
He had PSWT of €10,000 withheld in 2023. He can use this as a credit against the amount of Income Tax he owes. The amount of Income Tax due for 2023 is €30,000.
The PSWT of €10,000 deducted in 2023 may not be treated as a payment of the Preliminary Tax Jack owes in 2023.
Interim refunds
It may be possible for you to claim an interim refund, providing certain conditions are met. This is when withheld tax is refunded to you before it is credited against your Income Tax or Corporation Tax.
Your claim will be approved only if you have:
- finalised the profits for the previous tax year
- fully paid the tax due for the previous tax year
- and
- provided details to the PNs to which the claim relates.
In cases of particular hardship, some of the above conditions may not be applied. Hardship includes situations where:
- the payment is unique and unusual
- there is a unique or unusual reduction in your income
- there is a delay in finalising your tax due through no fault of your own
- and
- the tax paid minus PSWT, is more than your income at the higher rate of tax for that period.
You can also apply for an interim refund if you have recently started your own business.
Applications for a refund should be made using Form F50A and should be submitted via MyEnquires.
The specified person needs to specify on their application the calendar period that the request refers to.
Where do you claim a refund?
Usually, your claim must be submitted to your Revenue office.
If you are a non-resident, and do not pay tax in Ireland, you must complete a Form IC11 and a questionnaire. In conjunction, you must also submit either:
- Form F45(S) (for payments received pre 1 July 2021)
- or
- Acknowledgement of Payment Notification(s) (for payments received post 1 July 2021).
If you are a charity, you are exempt from paying PSWT. You should provide your CHY number to the accountable person, outlining that full payment, inclusive of PSWT, should be made in respect of professional services. Please contact the Charities and Sports Exemptions Unit with any queries.
How do you claim if you are a partner?
If the PN has been submitted in the name of the partnership, the partner who is named first in the partnership agreement (the precedent partner) should apportion the PSWT. They must issue a statement to each partner showing each person’s share of the PSWT. Each partner must apply separately for a refund to their Revenue office and include the statement showing their share of the PSWT.