RPC005119_EN_WB_L_1

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A Revenue Guide toProfessional Services Withholding Tax(PSWT) for Accountable Personsand Specified Persons

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Summary of Guide 3Part 1 - Outline of PSWT 41.1 What is PSWT? 41.2 Who must operate PSWT? 41.3 Rate at which PSWT is deducted 41.4 From which payments should PSWT be deducted? 41.5 Excluded payments 51.6 Amount from which PSWT is deducted 5 1.6.1 Treatment of expenses 5 1.6.2 Treatment of late payment interest 5 1.6.3 Treatment of VAT, Stamp Duty and certain other fees 5Part 2 - Accountable Persons 62.1 Who is an Accountable Person? 62.2 Registration of Accountable Persons 62.3 Mandatorye-filing 62.4 Obligation on accountable persons to deduct PSWT 62.5 Obligation to remit PSWT to Revenue 62.6 Payments by Accountable Persons to non-residents 72.7 Payments made between Accountable Persons 72.8 Payments by Accountable Persons to charities 72.9 Payments made by a foreign-based branch or agency of an accountable person 72.10 Inter group payments 8Part 3 - Specified Persons 93.1 WhoisaSpecifiedPerson? 93.2 HowdoesaSpecifiedPersongetproofofPSWTdeducted? 93.3 Credit/refundofPSWTtoSpecifiedPerson 93.4 Preliminary Tax 103.5 Interim Refunds 113.6 What to do where form F45 is lost, destroyed or incorrect 123.7 Where to claim credit/refund of PSWT 12Part 4 - Professional Services 134.1 Services covered by PSWT 134.2 Services which are not regarded as professional services for the purposes of PSWT 134.3 Services of employee 14Part 5 - Administration of PSWT 155.1 PSWT forms 155.2 Form F45 15 (a) General 15 (b) Partnerships 15 (c) Security numbers 16 (d) Continuous/laser stationery forms F45 for completion using a computerised system 16 (e) Forms F45 for manual completion 17 (f) Completion of form F45 by Accountable Person 175.3 Form F43 175.4 Form F30 (monthly return) 185.5 Form F35 (annual return) 18 (a) General 18 (b) Details to be returned on form F35 18 (c) Schedule to accompany form F35 195.6 Requests for forms and security numbers 195.7 Irish version of PSWT forms 195.8 Rectifying errors 19 (a) PSWT deducted in error 19 (b) Excess PSWT deducted 20 (c) InsufficientPSWTdeducted 20 (d) Payment made twice 20 (e) Payment made to the wrong person 20 (f) Errormadeinonetaxyearandrectifiedinasubsequenttaxyear 21Appendix 1 - Revenue Opinions regarding Professional Services 22

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Summary of GuidePart 1 Contains an outline of the PSWT scheme. It gives an overview of the circumstances in

which PSWT applies, summarises how it operates and how credits and refunds can be claimed.

Part 2 Contains information relevant to those who are required to deduct PSWT, known as accountable persons. It advises of the types of bodies that are accountable persons and how they should register with Revenue. It also outlines the obligation on accountable persons to deduct PSWT from payments for professional services and sets out limited circumstances in which that obligation does not apply.

Part 3 Contains information that is relevant to persons from whom PSWT has been deducted, known as specified persons, including how they can get credit for, or refunds of, PSWT.

Part 4 Provides information on the services to which PSWT applies. A summary of Revenue opinions relating to the applicability of PSWT to payments for various types of services is also included in Appendix 1.

Part 5 Gives details of the administrative procedures in place for the PSWT scheme. It includes information on the use and completion of various PSWT forms by accountable persons.

Contacting RevenueContactdetailsforallRevenueofficescanbeobtainedusingtheContactLocatorontheRevenuewebsite, www.revenue.ie

Forms and leaflet serviceAllformsandinformationleafletsreferredtointhisguideareavailablefromtheRevenuewebsite,www.revenue.ie or from the Revenue Forms and Leaflets Service at LoCall 1890 306 706 (ROI only) or + 353 1 702 3050 (from outside Ireland).

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Part 1 - Outline of PSWT

1.1 What is PSWT?Chapter 1, Part 18 of the Taxes Consolidation Act 1997 provides for a withholding tax to be deducted from payments made by certain bodies in respect of professional services. The tax is known as Professional Services Withholding Tax (PSWT).

Accountable Persons are required to deduct PSWT from Relevant Payments made by them to Specified Persons in respect of Professional Services and to remit the amounts deducted to Revenue.

PSWTdeductedis,ingeneral,availableforoffsetagainstthespecifiedperson’sfinalincometax/corporation tax liability for the period within which the relevant payment is charged to tax. Pending offsetagainstaspecifiedperson’sfinaltaxliability,aclaimforaninterimrefundofPSWTmay,in certain circumstances, be made during the year in which it is deducted (see Part 3 for further details).

1.2 Who must operate PSWT? PSWTmustbeoperatedbyeachofthebodieslistedas‘accountablepersons’inSchedule13tothe Taxes Consolidation Act 1997. In general terms, these are State and Semi-State bodies (see Part 2 for further details).

Authorised health insurers are accountable persons and payments made by them to registered medical or dental practitioners or their employers under contracts of insurance are relevant payments for PSWT purposes.

1.3 Rate at which PSWT is deductedThe rate at which PSWT is deducted is the standard rate of income tax in force at the date on which the relevant payment is made. The standard rate of income tax is currently 20%.

1.4 From which payments should PSWT be deducted?Subject to certain exclusions (see section 1.5), PSWT should be deducted from all “relevant payments”. “Relevant payments” are payments made by accountable persons in respect of professional services.

A relevant payment need not necessarily be in respect of services provided directly to the accountable person. PSWT applies where an accountable person makes a payment in respect of a professional service, whether it is provided to the accountable person or to another person.

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1.5 Excluded paymentsThere are certain payments from which PSWT should not be deducted. These include:

• paymentswhichcomewithinthescopeofthePAYEsystem(generallyacontractofservice).Information on the difference between a contract of service and a contract for services is contained in the Code of Practice for Determining Employed or Self-Employed Status of Individuals,availableontheRevenuewebsiteorfromRevenueFormsandLeafletsService.

• paymentswhichcomewithinthescopeoftheRelevantContractTax(RCT)scheme,

• certainpaymentsbetweenaccountablepersons(seesection2.7),

• paymentsbyanaccountablepersontoacharitythathasbeengrantedanexemptionfromincome tax by the Revenue Commissioners (see section 2.8),

• wherethepaymentismadebyaforeign-basedbranchoragencyofanaccountableperson(see section 2.9),

• certainintergrouppayments(seesection2.10).

1.6 Amount from which PSWT is deductedWhereanaccountablepersonmakesarelevantpaymenttoaspecifiedperson,theaccountableperson is obliged to deduct PSWT at the standard rate of income tax from the total amount of the payment being made, subject to the following.

1.6.1 Treatment of expensesWhere PSWT applies to a relevant payment, it applies to the entire payment, including any elementinrespectofthereimbursementofexpensesincurredbythespecifiedperson.Thiscontinues to be the position where expense items are isolated for separate payment or where the expenses are separately invoiced. Examples of expenses include costs incurred for travel, subsistence, postage, printing, stationery, secretarial services, advertising, and payments by the specifiedpersontothirdpartiesengagedbythespecifiedpersoninconnectionwiththedeliveryofthe service to the accountable person.

1.6.2 Treatment of late payment interestWith effect from 7 August 2002, it is an implied term of every commercial contract that interest is payable if debts are not paid on time. Therefore, where interest is payable on a payment in respect ofaprofessionalservice,PSWTshouldalsobedeductedfromtheinterest.(SeeTaxBriefing,Issue 52 - May 2003, available on the Revenue website).

1.6.3 Treatment of VAT, Stamp Duty and certain other feesVATchargedbythespecifiedpersonshouldbeexcluded for the purposes of calculating the amountofPSWTthatistobededucted.Inaddition,thefollowingfeespaidbythespecifiedpersonto the appropriate authorities should also be excluded where they are invoiced to the accountable person:

• StampDuties

• LandRegistryfees

• DeedofRegistrationfees

• CompanyOfficefees

• Courtfees

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Part 2 - Accountable Persons

2.1 Who is an Accountable Person?For the purposes of PSWT, accountable persons include the following:

• GovernmentDepartmentsandOffices

• Localauthorities

• TheHealthServiceExecutive

• AuthorisedHealthInsurers

• Commercialandnon-commercialsemi-Statebodiesandtheirsubsidiaries.

A list of accountable persons for PSWT purposes is set out in Schedule 13 to the Taxes Consolidation Act 1997. In addition to the bodies listed on Schedule 13,

• anysubsidiaryofabodylistedonSchedule13and

• anybody,whilenotowned51%byoneaccountableperson,whichisunderthecontrolofmore than one accountable person i.e. a joint venture

is also an accountable person for the purposes of operating PSWT.

2.2 Registration of Accountable PersonsAccountable persons must be registered with the Revenue Commissioners for the purposes of operating PSWT. Where a body/organisation is unsure whether or not it is an accountable person, itcanobtainadvicefromtheRevenueofficedealingwithitstaxaffairs.

On registration for PSWT, arrangements are made to supply the accountable person with the forms required to operate the scheme. Information in relation to PSWT forms is set out in Part 5.

2.3 Mandatory e-filingWitheffectfromthe1January2010,accountablepersonsarerequiredtofilealltaxreturns(including PSWT returns), and make payment to Revenue, by electronic means using the RevenueOn-LineService(ROS).Theregulationsgivingeffecttomandatorye-filingandinformation on how to register for ROS can be accessed on the Revenue website.

2.4 Obligation on accountable persons to deduct PSWT In general, accountable persons must deduct PSWT from all payments made in respect of professional services. However, there are certain exceptions to this rule and these are outlined in sections 2.7 to 2.10.

Toavoidmisunderstandings,accountablepersonsareadvisedtoinformspecifiedpersonsatcontract stage that PSWT is deductible from relevant payments to be made under the contract involved.

2.5 Obligation to remit PSWT to RevenueAccountable persons are responsible for the deduction and remittance of PSWT to Revenue. If an accountable person refuses or neglects to remit PSWT, the Revenue Commissioners can raise assessments for the PSWT on that accountable person.

The Revenue Commissioners also have the powers necessary to carry out on-site audits of accountable persons.

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2.6 Payments by Accountable Persons to non-residentsWiththeexceptionofspecificallyexcludedpayments,anaccountablepersonmustdeductPSWTfromallrelevantpayments.Thisobligationremainswherethespecifiedpersonisnon-residenteven though they may be entitled to a refund of the PSWT deducted as they are not subject to Irish income or corporation tax on that income.

For details on how non-residents can make a claim for a refund of PSWT deducted, please see Part 3.

2.7 Payments made between Accountable PersonsCertainpaymentsmadebyoneaccountablepersontoanotherarespecificallyexcludedfromtheobligation to deduct PSWT, namely:

• paymentsmadebyoneaccountablepersontoanotheraccountablepersoninre-imbursementof payment for professional services, and

• paymentsmadebyoneaccountablepersontoanotheraccountablepersonwhere,undertheTax Acts, the income of the accountable person receiving the payment is exempt from income tax or corporation tax.

Where payments between accountable persons fall within the second category above, the payer shouldobtainconfirmationinwritingfromthepayeethattheyareinfactcoveredbythisexclusion.

2.8 Payments by Accountable Persons to charities PSWT does not apply to payments made by an accountable person for professional services provided by a charity that has been granted an exemption from tax by the Revenue Commissioners. Charities that have not been granted an exemption from tax by Revenue continue to be subject to PSWT on all relevant payments received from accountable persons.

Again, where an accountable person is making a payment to a charity, the payer should obtain confirmationinwritingfromthepayeethattheyareinfactcoveredbythisexclusion.

2.9 Payments made by a foreign-based branch or agency of an accountable person

PSWT need not be deducted from a payment made by a foreign-based branch or agency of an Irish resident company that is an accountable person where all of the following conditions apply:

• thepaymentismadeabroadbythebranch/agency,

• thepaymentisforprofessionalservicesprovidedabroadtothebranch/agency,and

• thepersonprovidingtheprofessionalservice(thepayee)isresidentabroad.

In all other circumstances, PSWT should be deducted by accountable persons from payments to non-residents.

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2.10 Inter group paymentsThe Revenue Commissioners accept that PSWT does not have to be deducted by a company that is an accountable person from a payment in respect of professional services where such payment is made:

• toasubsidiaryofthecompany,

• byasubsidiarytoitsparentcompany,or

• byonesubsidiarytoanothersubsidiaryofacommonparentcompany.

Subsidiary for these purposes means a 51% subsidiary.

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Part 3 - Specified Persons

3.1 Who is a Specified Person?Specifiedpersonscanbeindividuals,companiesorpersonsoperatinginpartnership.

SubjecttothespecificexclusionsreferredtoinPart2,anaccountablepersonmustdeductPSWTfromrelevantpaymentsmadetoallspecifiedpersons,includingspecifiedpersonswhoare non-resident.WhilespecifiedpersonsprovidingservicestogovernmentbodiesmayberequiredtoproduceaTaxClearanceCertificatethisdoesnotnegatetheobligationontheaccountablepersonto deduct PSWT.

Where a relevant payment is made to a partnership then each person who is a partner in the partnershipisaspecifiedperson.Foradministrativepurposes,theaccountablepersoncanmake a relevant payment to a partnership. Where a relevant payment is made to a partnership the precedent partner in turn apportions both the payment and the PSWT deducted between the partners.

3.2 How does a specified person get proof of PSWT deducted?Whenmakingarelevantpayment,theaccountablepersonmustgivethespecifiedpersonaformF45confirmingtheamountofthepaymentmadeandtheamountofPSWTdeducted.HoweverinorderthattheaccountablepersonmayissueformF45,thespecifiedpersonmustprovidetheaccountable person with:

• in the case of an individual, his/her Personal Public Service Number (PPS No.),

• in the case of a company, its tax reference number and

• inthecaseofapartnership,thepartnership’staxnumber.

If VAT is included in a relevant payment, the VAT registration number must also be provided, if different from the PPS No. or tax reference number outlined above. Non-resident persons are required to state the tax reference that applies to them in their country of residence. Form F45 can not be issued in the absence of a tax reference number (see also 5.2).

3.3 Credit/refund of PSWT to Specified PersonsApart from a situation where an individual commences business, PSWT deducted by anaccountable person from a relevant payment is available as a credit against the gross amount ofincometaxorcorporationtaxchargeableonthespecifiedperson’sincomefortheperiodinwhichthe relevant payment is charged to tax. Therefore, it will (together with any other credits to whichthespecifiedpersonisentitled)reducetheamountoftaxpayablebythespecifiedpersonfortheperiod.

For individuals assessable to income tax, credit for PSWT deducted from a relevant payment is normally given against the amount of income tax chargeable for the tax year in which the relevant payment is chargeable to tax. For companies assessable to corporation tax, credit for PSWT deducted from a relevant payment is given against the amount of corporation tax chargeable for the accounting period in which the relevant payment is chargeable to tax.

Foranindividualcommencingbusiness,creditforPSWTdeductedinthefirstyearofbusinesswillnotnormallybegivenuntilthesecondtaxyear.Thisarisesbecausetheprofitsshowninthefirst12months’accountsmayformthebasisofachargetoincometaxforthefirsttwotaxyears.In such circumstances, the PSWT deducted is deemed to be deducted in the basis period for thesecond tax year. However, such an individual may qualify for an interim refund (see section 3.5).Anaccountableperson,onmakingapaymentfromwhichPSWTisdeducted,givesthespecified

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person a form F45. The information recorded on form F45 includes:

•theamountoftherelevantpayment,

•theamountofPSWTdeducted,and

•thetaxreferencenumberofthespecifiedpersonwhoprovidedtheprofessionalservice.

AformF45isevidencethatthespecifiedpersonhashadPSWTdeductedfromarelevantpayment.Accordingly,itisavaluabledocumentandshouldberetainedcarefullybythespecifiedperson, as it must be presented to Revenue in support of any claim for credit or refund, ifrequested.SpecifiedpersonscanclaimacreditofPSWTrelatingtoataxyear/accountingperiodby completing the relevant section of their tax return for that year/period. Where such claimsresult in an overpayment of tax, the excess is, subject to any other outstanding tax liabilities ofthespecifiedperson,availabletoberefundedbyRevenueprovidedthattheclaimismadewithinrelevant time limits.Where an accountable person makes a payment to a partnership they should issue the form F45in the name of the partnership and must quote the tax number of the partnership (see section 5.2).The precedent partner must then apportion the payment and the associated PSWT between eachof the partners and provide them with a copy of the form F45 and a statement showing their shareofthepayment/PSWT.Thesedocumentsarethenusedbythepartners,asspecifiedpersons,toclaim credit/refunds for PSWT suffered.

3.4 Preliminary TaxUnder the Pay & File system, preliminary tax in respect of a tax year or accounting period is payablebyaspecifiedpersondirectlytotheCollectorGeneralbyreferencetotheamountoftaxpayable (tax payable is the gross amount of tax due (i.e. amount chargeable) less any credits towhichthepersonisentitled)bythespecifiedpersonforthattaxyearoraccountingperiod.However, in order to avoid interest charges, a certain minimum amount of preliminary tax must be paid for the tax year or accounting period involved. In the case of an individual liable to income tax, the amount of preliminary tax to be paid must be equal to or exceed the lower of:

• 90% of the amount of tax payable for the tax year,• 100% of the amount of tax payable for the previous tax year, or• 105% of the amount of tax payableforthepre-precedingtaxyear.(Thisfinaloptionisonly

available where preliminary tax is paid to the Collector General by direct debit and does not apply where the tax payable for the pre-preceding year was nil).

As indicated earlier, PSWT can be taken into account as a credit against the amount of tax chargeable for a tax year or accounting period in computing the amount of tax payable for the year or period.

ExampleAn individual estimates that the amount of income tax chargeable for the tax year 2012 to be €40,000 and has PSWT of €10,000 available as a credit against the amount of income tax chargeable for that year. Therefore, the amount of income tax payable by the individual for the year 2012 is €30,000.For the tax year 2011, the income tax chargeable on the individual was €25,000 and PSWT of €15,000 was available as a credit against the amount of income tax chargeable for that year. Therefore, the amount of income tax payable for 2011 was €10,000.If the individual wishes to pay preliminary tax for 2012 by reference to the 90% rule, then the amount to be paid directly to the Collector General is €27,000 (i.e. €30,000 x 90%). If the individual wishes to pay preliminary tax for 2012 by reference to the 100% rule, then the amount to be paid directly to the Collector General is €10,000 (i.e. €10,000 x 100%).

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Regardless of which option the individual takes, the PSWT of €10,000 that was deducted in 2012 may not be treated as a payment (or part payment) of the preliminary tax that is required to be paid directly to the Collector General.

3.5 Interim refundsRather than waiting to have PSWT credited against the amount of income tax or corporation taxchargeableonaspecifiedperson’sincomeforataxyear/accountingperiod,thespecifiedpersonmaymakeaclaimduringtheyear/periodforaninterimrefund.Certainconditionsmustbesatisfiedbefore an interim refund claim is allowed. In general, the following three conditions must be metbefore an interim refund may be made:i.theprofitsfortheperiodimmediatelyprecedingtheperiodofclaimhavebeenfinalised,

ii. the tax payable for that preceding period has been paid in full, and

iii.formsF45forthePSWTinquestionareprovidedtothetaxpayer’sRevenueoffice.

ExamplePSWTisdeductedfromarelevantpaymentmadeon1July2012.Accountsofthespecifiedperson are made up to 30 September each year and the relevant payment will be taken into accountincomputingtheprofitsfortheyearto30September2012.Inthecaseofanindividual,inordertoqualifyforaninterimrefund,theprofitsofthebasisperiodforthetaxyear2011(i.e.profitsfortheyearended30September2011)musthavebeenfinalisedandthetaxpayableforthetaxyear2011musthavebeenpaid.Inthecaseofacompany,inordertoqualifyforaninterimrefund,theprofitsoftheaccountingperiodended 30September2011musthavebeenfinalisedandthetaxpayableforthatperiodmusthavebeen paid.From the PSWT deducted, an amount equal to the tax liability at (ii) above is retained. In addition, an amount equivalent to any outstanding liability is retained. The balance of PSWT deducted,ifany,isthenavailabletoberefundedtothespecifiedperson.

In cases of particular hardship, some or all of the above conditions may be waived where amountsofPSWTwithheldaresubstantiallyinexcessoflikelyfinaltaxliabilityandfailuretomeettheconditions would not permit an interim refund in certain circumstances, such as:•aonce-offorunusualreceipt,aonce-offorunusualreductioninincome,ora demonstrable permanent reduction in income, or•if,throughnofaultofthetaxpayer,thereisadelayinfinalisingliabilitytotaxfora

particular year due to illness or other exceptional circumstance, or•ifincometaxliability(netofPSWTcredited)paidinaperiodofclaimtogetherwithPSWTdeductedinthatperiodexceedsanamountarrivedatbymultiplyingthetaxpayer’s

income for the period by the higher rate of tax which applies for that period.A person who has recently commenced business may wish to apply for an interim refund. Because such a person would be unlikely to satisfy the three conditions outlined above, Revenue applies specialtreatmentwherebylikelytaxliabilityofthefirsttaxyearoraccountingperiodisestimatedincalculating whether an interim refund arises. Allclaimsforinterimrefundsshouldbemadetothespecifiedperson’sRevenueofficeusingformF50 and should be supported by relevant forms F45/F43. Further information on interim refundsis contained in Statement of Practice SP – IT/3/90, available on the RevenuewebsiteandfromRevenueFormsandLeafletsService.

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3.6 What to do where a form F45 is lost, destroyed or incorrectForm F45 lost/destroyedSpecifiedpersonsshouldretainformsF45carefully.Where,exceptionally,aformF45islostordestroyed,thespecifiedpersonshouldinformtheaccountablepersonfromwhomtheyreceivedthe form F45 and request the accountable person to issue a form F43.

Incorrect form F45WheretheinformationcontainedonformF45isincorrect,thespecifiedpersonshouldreturntheoriginal form F45 to the accountable person and request that a form F43 be issued. The most common errors relate to:

• theamountoftherelevantpaymentstatedontheformF45,or

• theamountofPSWTstatedontheformF45.TaxBriefing28(October1997,pages3-4),availableontheRevenuewebsite,clarifiesthecircumstances in which a form F43 can be sought from an accountable person.

3.7 Where to claim credit/refund of PSWTGeneralApart from charities and non-residents (which are dealt with below), claims for credit or interim refundsofPSWTaredealtwithintheRevenueofficedealingwiththetaxaffairsofthespecifiedperson.CharitiesClaimsforrefundofPSWTbyspecifiedpersonswhoarecharitiesshouldbemadeto:

Charities Section, Collector-General’sDivision, GovernmentOffices, Nenagh, County Tipperary. Tel: 1890 666 333 (ROI only) or + 353 67 63 400 (from outside Ireland) Email: charities@revenue.ie

Non-residentsWhere a non-resident is not chargeable to tax in the State for the year/period in which PSWT is deducted, repayment of the PSWT should be claimed from:International Claims Section, Collector-General’sDivision, GovernmentOffices, Nenagh, County Tipperary. Tel: 067 63 400 or + 353 67 63 400 (from outside Ireland) Email: intclaims@revenue.ieNon-residents claiming repayment of PSWT must complete claim form IC11 and separate questionnaire (available on the Revenue website) and send them together with relevant forms F45 to the above address. Where a non-resident is chargeable to tax in the State for the period in which the PSWT is deducted,claimsforcreditorforinterimrefundofPSWTshouldbemadetotheRevenueofficethat deals with the tax affairs of the non-resident. A non-resident is chargeable to tax in the State for the period in which the PSWT is deducted, if during that period the non-resident carries on business through a permanent establishment situated in the State.

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Part 4 - Professional Services

4.1 Services covered by PSWT PSWT applies to payments made for the provision of professional services. Section 520 of the Taxes Consolidation Act 1997 lists certain services that come within the meaning of professional services. The term “professional services” includes:

• servicesofamedical,dental,pharmaceutical,optical,auralorveterinarynature,

• servicesofanarchitectural,engineering,quantitysurveyingorsurveyingnature,andrelatedservices,

• servicesofaccountancy,auditingorfinanceandservicesoffinancial,economic,marketing,advertising or other consultancies,

• servicesofasolicitororbarristerandotherlegalservices,

• geologicalservices.

The above is not an exhaustive list. A summary of the Revenue position in relation to the application of PSWT to various services is set out in Appendix 1.

It should be noted that a service, which is not professional in nature, may be subject to PSWT where it forms part of a wider contract for professional services. In those circumstances, all payments under the contract come within the scope of PSWT. For example, a printing service on its own is not regarded as a professional service. However, where a printing service is provided as part of a wider design or consultancy service, payment for the entire service, including the printing element, comes within the scope of PSWT. This applies even when elements of the service are separately invoiced.

4.2 Services which are not regarded as professional services for the purposes of PSWT

Revenue does not regard the following services as professional services for the purposes of PSWT:

• teaching,trainingorlecturingservices,

• translationservicesincludingservicesofaninterpreter,

• proof-readingservices,

• servicesofstenographers,

• settingandassessingoral,auralorwrittenexaminations,

• contractcleaningservices,

• maintenanceandrepairwork.

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4.3 Services of employeePSWT is deducted from self-employed persons who provide professional services. It does not applytoemployeesaspaymentstoemployeesfallwithinthePAYEsystem.EmployersmustoperatePAYEonpaymentstoemployeesandofficeholders(e.g.boardmembers)eveniftheduties performed are professional in nature. Employers may not deduct PSWT as an alternative.

In this regard, the following are available on the Revenue website:

• CodeofPracticeforDeterminingEmployedorSelf-EmployedStatusofIndividuals,and

• ArticleontheTaxationofPart-TimeLecturers/Teachers/TrainersinTaxBriefing28-October1997 (pages 19/20).

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Part 5 - Administration of PSWT

5.1 PSWT formsThe forms used in the administration of PSWT are:

• FormF45-issuedbyanaccountablepersononmakingarelevantpaymenttoaspecifiedperson,

• FormF43-issuedbyanaccountablepersontoaspecifiedpersononlywhereformF45is(i)lost or destroyed or (ii) where the details on the form F45 are found to be incorrect,

• FormF30-isthemonthlyreturnmadetoRevenuebyanaccountablepersonofthetotalamount of PSWT deducted from all relevant payments made by the accountable person in the preceding month,

• FormF35-istheannualreturn,madebyanaccountablepersondeclaringtheirPSWTliabilityfor the tax year. It is accompanied by a schedule giving details of the total relevant payments madeto,andthetotalPSWTdeductedfrom,eachspecifiedpersoninthetaxyear.

5.2 Form F45

(a) GeneralForms F45 are available for completion either manually or by way of a computerised system. On registration for PSWT, accountable persons should indicate if they intend to use manual forms F45 or a stationery version of the form F45 for completion using a computerised system.

Form F45 is a valuable document as it provides documentary evidence of the amount of PSWT deducted from a relevant payment as well as the amount of the payment and of VAT charged, if applicable. A form F45 must be issued by the accountable person in respect of each relevant payment made.

An accountable person can only issue form F45 in circumstances where they have been provided withthespecifiedperson’staxreferencenumber.InthecasewhereanIrishtaxnumberisprovided,theaccountablepersoncanseekconfirmationfromthespecifiedperson’sthatthetaxnumberprovidedbythemisthecorrecttaxnumberforthespecifiedperson’sconcerned.TheaccountablepersoncanalsoseekconfirmationregardingthevalidityofanIrishtaxnumberdirectly from the Revenue Commissioners.

• AsecondformF45shouldneverissueinrespectofarelevantpayment.Therefore,whereaformF45issuedtoaspecifiedpersonislostordestroyedorwherethedetailsenteredrequireamendment, a form F43 should be sought from the accountable person.

• SpecifiedpersonsmustretainformsF45forinspectionastheymayberequiredbyRevenueto support an application for credit of PSWT deducted. Claims for interim refunds must be supported by the relevant forms F45 at the time of the claim.

(b) PartnershipsIn the case of payments made to a partnership, the accountable person may issue the form F45 to the partnership rather than to the individual partners. In these cases, the precedent partner is responsibleforfurnishingtheaccountablepersonwiththepartnership’staxnumber.Asinthecaseof payments to individuals/companies, the accountable person can ask the precedent partner to provide evidence of this number or, in the case of an Irish partnership, they can ask Revenue to confirmthatthetaxnumberprovidedisrelatedtothatpartnership.

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(c) Security numbersEach form F45 issued by an accountable person must contain a security number. Security numbers comprise of six digits preceded by a separate dedicated alpha character. Manual forms F45 incorporate the security number. Where Revenue approval is given for the use of a stationery version of the form F45 for completion with a computerised system, a range of security numbers is supplied by Revenue for use with that stationery.

A register is maintained by Revenue of the range of security numbers issued to each accountable person. Accountable persons are required to put measures in place to ensure that only security numbers from the range supplied to them by Revenue are used. The accountable person must ensure that a separate security number from this range appears on each form F45 issued via the computerised system. A security number can be used only once.

(d) Continuous/laser stationery forms F45 for completion using a computerised systemRevenue approvalAn accountable person wishing to use continuous/laser stationery for the completion of forms F45 mustfirstgetapprovalfromtheirRevenuedistrict.WhereanaccountablepersonseeksRevenueapproval to use continuous/laser stationery for the completion of forms F45, the accountable person’scomputersystemmustbecapableof:

• issuingaformF45inrespectofeachrelevantpaymentmade,

• printingasecuritynumber,fromtherangeofnumberssuppliedbyRevenue,oneachformF45 issued,

• flagging,thattherangeofsecuritynumbersassignedbyRevenuearecomingtoanend,in order that a further range of security numbers may be requested from Revenue. (It is important not to exceed the range of security numbers assigned by Revenue as this can result in security numbers being duplicated),

• retainingadetailedrecordofeachrelevantpaymentmade,includingarecordofthesecuritynumber assigned to that payment.

In addition, where the computer system also calculates:

• themonthlyremittance/returnofPSWTtoRevenue,thesystemmustbecapableofalteringthe monthly remittance, to take account of any payment errors made and corrected in relation to previous months in the tax year,

• theannualPSWTliabilityoftheaccountableperson,thesystemmustbecapableofproducingan end of year schedule, which takes account of any payment errors made and corrected in the tax year.

Continuous stationery forms F45 (supplied by Revenue)Where following Revenue approval (as referred to above), an accountable person opts to use the continuous stationery version of form F45 Revenue will supply the stationery to the accountable person.

Laser stationery approved by RevenueRevenue has also approved a laser stationery version of form F45 for completion using a computerised system. It is sourced separately from Revenue, from an approved source. For information regarding laser stationery, accountable persons should contact their local Revenue office.

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(e) Forms F45 for manual completion Manual forms F45 have a security number printed on each form. Revenue maintains a register ofallmanualformF45’sissuedtoeachaccountableperson.Theseformsshouldbestoredina secure place by the accountable person to whom they are assigned, as, once received from Revenue, they become the responsibility of that accountable person.

Whenarelevantpaymentisbeingmade,part1offormF45shouldbegiventothespecifiedperson and part 2 retained by the accountable person as a record of:

• therelevantpaymentmadeandPSWTdeducted,and

• thesecuritynumberrelatedtotheformF45.

(f) Completion of form F45 by Accountable PersonAll sections of form F45 should be completed in full. Particular points to note are:

Specified Person DetailsSpecifiedpersonsmustsupplytheirtaxreferencenumbertotheaccountableperson.FailuretodosowillmeanthattheaccountablepersonisunabletoissuethespecifiedpersonwithformF45.WithoutaformF45thespecifiedpersoncannotobtainanycreditfor,orrefundof,PSWT.

SpecifiedpersonswhoarenotresidentintheStateandwhodonothaveanIrishtaxreferencenumber must supply the accountable person with the reference number they use in their home country.

Relevant Payment detailsAt A1, insert the gross amount of the payment inclusive of the VAT attaching thereto.

At A2, insert the amount of VAT. [VAT is excluded from the charge to PSWT].

At A3, insert the amount of PSWT deducted. This is calculated by excluding the VAT element from the gross payment and applying the standard rate of tax, as follows:

(A1 - A2) x standard rate of taxAmounts shown on form F45 must be in Euro. Where a payment is made to a person resident outside the State, the equivalent foreign currency amounts may be shown in brackets beside the Euro amounts.

As forms F45 are issued in respect of relevant payments made by an accountable person, there are no circumstances where a form F45 with nil payment can be issued.

5.3 Form F43 Form F43 is the only evidence that will be accepted by Revenue in the absence of form F45. Similar to forms F45, each form F43 has a pre-printed security number assigned to it and should be stored in a secure place as, once received from Revenue, these forms become the responsibility of the accountable person. A form F43 should be issued in exceptional circumstances only.TaxBriefing28,availableontheRevenuewebsite,containsanarticlethatclarifiesthecircumstancesinwhichformsF43shouldbeissuedbyaccountablepersons.

A form F43 should only be issued by an accountable person where the original form F45 which was issued:

• islostordestroyedandaduplicate,oralternativeevidenceofpaymentandPSWTdeduction,isrequestedbythespecifiedperson(insuchcircumstance,theaccountablepersonshouldrequestwrittenconfirmationfromthespecifiedpersonthattheformF45islostordestroyed),or

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• isincorrect(insuchcircumstance,theaccountablepersonshouldensurethattheoriginalformF45isretrievedfromthespecifiedpersonbeforetheFormF43isissued).

Where the form F45 is lost or destroyed, the accountable person must include the details from the original form F45 on the form F43 and tick the duplicate box on the form F43. Where the form F43 is issued as an amendment, i.e. the form F45 issued was incorrect, the accountable person must include the correct details on the form F43 and tick the amendment box on the form F43.

The security number of the original form F45 must be stated on the form F43 in the space provided. A form F43 is invalid where this is not done.

When issuing a form F43 because the amount of the relevant payments on the original form F45 wasincorrect,theaccountablepersonmustensurethatthecorrectedfiguresareincludedintherelevant monthly and annual return forms (form F30 & form F35).

As with form F45, there are no circumstances where a form F43 with nil payment can be issued.

5.4 Form F30 (monthly return)Form F30 is a monthly return that each accountable person is required to make to Revenue. It is a declaration of the total amount of PSWT deducted by an accountable person from the 1st day ofanincometaxmonthtothelastdayofthesameincometaxmonth.FormF30mustbefiledelectronically (see section 2.3) and payment of PSWT deducted made within 14 days from the end of each income tax month. For example, the form F30 for the month of March in any year must be filed,andtherelevantPSWTpaymentmadetoRevenue,by14Aprilofthatyear.WherenoPSWTis deducted by an accountable person in a month, a “NIL” return mustbefiled.

5.5 Form F35 (annual return)

(a) GeneralThis is an annual return made by an accountable person declaring their PSWT liability for a tax yearandmustbefiledelectronically(seesection2.3)by15Februaryfollowingtheendofthetaxyear to which it relates. Where an accountable person deducts no PSWT in a tax year, a “NIL” return mustbefiledforthatyear.

(b) Details to be returned on form F35Details to be returned on the form F35 are as follows:

• totalPSWTliabilityforataxyearinrespectofallrelevantpaymentsmadebyanaccountableperson in that year. Where a form F43 was issued during the tax year to amend the amount of a relevant payment or the amount of PSWT deducted on an original form F45, the accountablepersonmustensurethatthecorrectedfiguresarereflectedontheformF35,

• totalPSWTalreadypaidtoRevenueforthetaxyearthroughthemonthlyformF30returnprocedure,

• thedifference,ifany,betweenthetotalPSWTliabilityforthetaxyearandthetotalamountof PSWT paid to Revenue throughout the year. Where a balance of PSWT is owed, payment of the balance of PSWT should be made electronically to Revenue at the time the form F35 is submitted. Where an excess amount of PSWT has been paid, Revenue will liaise with the accountable person.

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(c) Schedule to accompany form F35A schedule giving details of the total relevant payments made to, and the total PSWT deducted from,eachspecifiedpersoninthetaxyearmustaccompanytheformF35.TheschedulemustbecompletedunderthefiveheadingslistedontheformF35,asfollows:

Name of Specified PersonAddressPPS Number/Tax reference numberTotal of Relevant Payments from which PSWT was deductedTotal PSWT deducted

Queries regarding forms F30/F35 should be made to:

Services and Transactions Taxes Unit, Collector-General’sDivision, GovernmentOffices, Mill Lane, Listowel, County Kerry. Phone: 068 56936 or + 353 68 56936 (from outside Ireland).

5.6 Requests for forms and security numbers All requests by accountable persons for forms, stationery and security numbers should be made totheRevenueofficedealingwiththeaccountableperson.Accountablepersonsmustprovidethefollowing information with their request:

• thenameoftheindividualmakingtherequest,

• thename,addressandtelephonenumberoftheaccountableperson,

• theTaxReferenceNumberoftheaccountableperson,

• thetypeandthequantityofforms(orsecuritynumbers)requiredand,inthecaseofformF45,whether manual or continuous stationery version is required.

5.7 Irish version of PSWT formsForm F45 (Manual), form F43, form F30 and form F35 are available in Irish.

Accountable persons wishing to use the Irish version of the above PSWT forms should inform their Revenueofficeinwriting.

5.8 Rectifying errors

(a) PSWT deducted in error • WherePSWThasbeendeductedinerrorandremittedtoRevenue,theaccountablepersonshouldprovidewrittenconfirmationtothiseffect(indicatingthereasonfortheerror)tothespecifiedperson.Thespecifiedpersonshouldforwardthiswrittenconfirmation,togetherwiththerelevantformF45,totheRevenueofficethatdealswiththespecifiedperson’staxaffairs.Revenuewill,ifappropriate,refundthePSWTdeductedinerrortothespecifiedperson.

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• WherethePSWThasbeendeductedinerrorbuthasnotbeenremittedtoRevenue,theaccountablepersonshouldretrievetheformF45fromthespecifiedpersonandrefundtherelevantamounttothespecifiedperson.BothpartsoftheoriginalformF45shouldbemarkedcancelled and retained by the accountable person.

(b) Excess PSWT deductedWhere it is found that excess PSWT has been deducted, the accountable person should:

• retrievetheformF45thatissuedwhentherelevantpaymentwasmade,

• issueformF43showingthecorrectdetailsofPSWTdeducted,

• refundtheexcessPSWTdeductedtothespecifiedperson,and

• reducethenextmonthlyreturn(formF30)ofPSWTmadetoRevenuebytheamountofthePSWT overpaid in respect of the error.

Where the next monthly return falls into a different tax year, please refer to paragraph (f) below.

(c) Insufficient PSWT deductedWhereitisfoundthatinsufficientPSWThasbeendeducted,theaccountablepersonshould:

• retrievetheoriginalformF45thatissuedwhentherelevantpaymentwasmade,

• issueformF43showingthecorrectdetailsofPSWTdeducted,and

• remittheadditionalPSWTdueonthepaymentwiththenextmonthlyreturn(formF30)ofPSWT made to Revenue.

Where the next monthly return falls into a different tax year, please refer to paragraph (f) below.

(d) Payment made twiceWhere a relevant payment is made twice in respect of the same transaction, the accountable person should:

• retrievetheduplicatepaymentandtheformF45inrespectofthatpaymentfromthespecifiedperson,

• markbothpartsofthatformF45ascancelledandretainthemtogether,

• reducethenextmonthlyreturnofPSWTmadetoRevenuebytheamountoverpaidtoRevenue in respect of the error.

Where the next monthly return falls into a different tax year, refer to subparagraph (f) below.

(e) Payment made to the wrong person The accountable person should:

• recoverthepaymentandtheformF45thatwasissuedtothewrongperson,

• markbothpartsoftheformF45ascancelledandretainthemtogether,

• issueaformF45togetherwiththepaymenttothecorrectspecifiedperson.

While, in this instance, no amendment is required to the remittance of PSWT to Revenue, care should be taken to ensure that the schedule accompanying form F35 (annual return) accurately reflectspaymentsmadetoallspecifiedpersons.However,ifthepaymenttothecorrectpersonismade in a different tax year to the earlier payment, please refer to paragraph (f) below.

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(f) Error made in one tax year and rectified in a subsequent tax yearWhere a PSWT error relating to a tax year is discovered after form F35 for that tax year has been filed,theerrorcannotberectifiedbyadjustingthenextmonthlyremittancetoRevenue.

Instead, an amended form F35 should be completed and submitted electronically to Revenue. Where the amended form F35 results in an additional liability to PSWT, payment of that amount should be submitted electronically to Revenue. Where the amended form F35 results in an overpayment of PSWT by the accountable person, Revenue will liaise with the accountable person.

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Appendix 1 - Revenue Opinions regarding Professional Services1 Advertising ServicesSubject to the comments below in relation to advertising space or time, payments for advertising services are subject to PSWT. Advertising services include services involved in:

• designinganadvertisement,and

• conductinganadvertisingcampaign.

Advertising services can involve the use of many other services. For example, they may involve the services of photographers, models, graphic art designers, commercial artists, freelance writers and printing. Where an advertising service is provided by an advertising agency, PSWT is to be deducted from the total payment (for all component services) by the accountable person to the agency.

It should be noted that outside of the scenario outlined above, services such as photography, modelling, graphic design, commercial artistry, freelance writing and printing are not of themselves generally professional services for the purposes of PSWT. Accordingly, where an accountable person makes a payment for any such individual service directly to the person providing the service, the payment is not subject to PSWT unless such service forms part of a wider consultancy.

Advertising Space or TimeWhere advertising space or time is provided as part of an overall professional service, e.g. by an advertising agency as part of an advertising service, the total payment for the service (including the advertising space or time) is subject to PSWT. Payments made to:

• anadvertisingmedium(e.g.anewspaper),or

• apersonactingasanagentforanadvertisingmedium(e.g.anadvertisingagency)inordertoobtain advertising space or time are not generally subject to PSWT.

2 ArchaeologyPayments in respect of archaeological consultancies are subject to PSWT. In general, payments in respect of archaeological digs or excavations are not subject to PSWT. However, where archaeological digs or excavations form part of an overall professional service, for example, an archaeological consultancy, the full amount of the payment is subject to PSWT.

3 Auctioneers/Estate Agents/ValuersPaymentsinrespectofanauctioneer’s,estateagent’sorvaluer’sfeesaresubjecttoPSWT.Where the fee includes advertising costs, the full amount of the fee (including advertising costs) is subject to PSWT.

4 Bank ChargesPayments in respect of fees, commissions and charges for banking transactions are subject to PSWT.However,thechargeimposedbyabankfortheordinaryservicingofacustomer’scurrentaccount,whichisdebitedtothecustomer’scurrentaccount,isnotsubjecttoPSWT.

5 Board Members/ChairpersonsPayments made to chairpersons and individuals who sit on boards and committees are generally emolumentsfromanofficechargeabletotaxandsubjecttotheoperationofPAYE/PRSI.Accordingly PSWT does not apply to such payments.

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6 Computer ServicesPayments for independent advice on the installation, development (including the development of a web site) or running of computer systems are subject to PSWT. Payments in respect of the following services are not subject to PSWT:

• thesaleofcomputerhardwareandsoftwarepackages

• thesaleofsoftwarepackagesdevelopedbytheseller.Thiscontinuestobethepositionwherethe cost of the hardware or software package includes an element of service which is not charged separately to the customer, for example:

- initial analysis of the work to be computerised

- development of a hardware or software package for the customer

- provision of training and other back-up services

• maintenanceofcomputersoftware.

7 Consultancy Payments in respect of any type of consultancy are subject to PSWT. Note that a service, which involves the provision of advice, is a consultancy.

8 Costs of Acquisitions/Disposals of Land or PropertyGeneralPayments in respect of professional costs associated with the acquisition or disposal of property or land other than under a compulsory purchase order (see below), including payments made in respect of the professional costs of a person other than the accountable person, are subject toPSWT.Paymentsinrespectofprofessionalcostsincurredpriortotheformalconfirmationofa compulsory purchase order are also subject to PSWT unless they are part of an out of court settlement (see Opinion 9 below).

Property/Land Acquisitions by Compulsory Purchase OrderWhere property is acquired by compulsory purchase order, the following are subject to PSWT:

• conveyancingcosts,

• paymentsmadebytheaccountablepersoninrespectoftheaccountableperson’sowncosts.

Where property is acquired by compulsory purchase order, the following are not subject to PSWT:

• professionalcostsawardedbyanarbitrator.Examplesincludethevendor’slegalcosts,auctioneers fees, estate agents fees, valuers fees, etc.,

• professionalcostsincurredinreachingagreement,priortoarbitration,wheresuchcostscouldhave been awarded by an arbitrator.

9 Costs of Legal ActionsWhere, under a ruling of a court, tribunal or similar body which is legally empowered to award costs, an accountable person is required to make a payment to a person in respect of professional costs incurred by that person, the payment is not subject to PSWT. This also applies where the payment is made directly by the accountable person to the person who provided professional services.

The reason for not applying PSWT in these circumstances is that, once awarded, the costs are regarded as a compensation payment made by the accountable person and not a payment in respect of professional services.

PSWTappliestopaymentoftheaccountableperson’sowncosts,includinganypaymentoutof

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costs awarded to the accountable person.

Payments made to a person in an “out of court” settlement towards the professional costs of that person are not subject to PSWT if the action was one in respect of which an order for costs could have been made by the court, tribunal etc.

In all other cases, PSWT must be deducted from payments made in respect of the costs of a person other than the accountable person.

10 Debt CollectionPayments in respect of a debt collection service are subject to PSWT. However, where no payment is actually made but instead a percentage of the amount recovered is retained by the debt collector, PSWT does not apply.

11 Dental TechniciansPayments in respect of the supply by a dental technician of goods such as dentures, dental braces and other prosthetic appliances (which are manufactured by the dental technician), directly to an accountable person, are not subject to PSWT.

12 Employment/Recruitment AgenciesA service involving the interviewing, screening, or selection of candidates for a job is regarded as a consultancy service and, accordingly, payments for such services are subject to PSWT.

Payments to employment or recruitment agencies simply for the placement of individuals are not subject to PSWT.

13 Films/Radio/Television ProgrammesPayments made directly to actors, producers and directors and for post-production facilities solely forthepurposesofmakingafilm,radioortelevisionprogrammeorseriesarenotsubjecttoPSWT.

Where accountants, solicitors, etc. are engaged to provide professional services for the purposes ofmakingafilm,radioortelevisionprogrammeorseries,paymentsmadebyanaccountableperson for such services are subject to PSWT.

14 InsurancePayments in respect of insurance consultancy services are subject to PSWT. Examples of such servicesincludelossadjusting,identification/assessmentofriskexposure,marketingrisks,policydesign, actuarial advice and claims analysis.

Payment of excesses under insurance policies are not subject to PSWT.

Payments of insurance premiums to brokers for transmission to an insurance company are not subject to PSWT. However, where a broker charges a separate fee for his services, PSWT should bedeductedfromthebroker’sfee.Suchafeecouldbeintheformofanannualmanagementfeeorafeechargedinrelationtoaspecifictransaction.

15 Laboratory Tests Payments in respect of laboratory tests are subject to PSWT where the tests involve a service which is a professional service. For example, payments in respect of medical tests such as blood tests and biopsies are subject to PSWT because the service is of a medical nature.

Payments in respect of laboratory tests are not subject to PSWT where the test is not a service which is a professional service. For example, a payment in respect of a test to measure the level of pollution in water is not subject to PSWT.

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16 Medical AppliancesPaymentsinrespectofthesupplyofartificiallimbs,artificialeyes,surgicalandmedicalappliancesincludinganyincidentalserviceoffittingarenotsubjecttoPSWT.However,whereaseparatefeeischargedforfitting,thefeeissubjecttoPSWTasthepaymentisforaserviceofamedical/optical/aural nature.

17 Medical Costs incurred in respect of EmployeesWhere, as part of their conditions of employment, the employees of an accountable person are entitled to submit bills for medical treatment incurred by them for payment by the accountable person, payments made by the accountable person to its employees in reimbursement of those expenses are not subject to PSWT.

Where, the accountable person pays a medical practitioner directly for the provision of medical services to the employee, PSWT applies to the payment.

18 Opticians/OptometristsWhere opticians/optometrists receive payments from the Department of Social Protection or from the Health Service Executive, the cost of goods provided may be excluded from the amount to be charged to PSWT where the fee and the cost of the goods are shown separately.

Opinion 16 above applies as regards payments in respect of optical appliances.

19 PrintingA printing service is not of itself a professional service within the terms of PSWT. Accordingly, payments in respect of services that involve printing and nothing else are not subject to PSWT.

Where printing forms part of an overall professional service provided to an accountable person, it is an expense incurred in the provision of that service. The full amount of the payment in respect of the service including the printing of forms is subject to PSWT. For example, where an accountable personcommissionsaspecifiedpersontodesignandprintabrochure,theentirepaymentfortheproduction of the brochure is subject to PSWT.

20 Quality ControlA quality control service is not of itself a professional service within the terms of PSWT. Accordingly, payments in respect of quality control services are not subject to PSWT where the service provided has no professional element. For example, payments in respect of examinations to determine whether a quality control level is achieved are not subject to PSWT.

Where a quality control service includes a professional element, the entire payment is subject to PSWT. For example, payments in respect of a quality assurance consultancy, i.e. the provision of advice on quality control matters are subject to PSWT.

21 Retail ChemistsPayments made to retail chemists are subject to PSWT. However, the cost of goods supplied and containers may be excluded from the amount to be charged to PSWT if these costs are separately identified.

22 TrainingPayments in respect of training consultancy services are subject to PSWT. Examples of a training consultancy service are:

• theprovisionofadviceontrainingrequirements,and

• thedesign/developmentofacourse,syllabusorprogramme.

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Payments in respect of the following services are not subject to PSWT:

• teaching,trainingorlecturingservices(seearticleonthetaxationofpart-timelecturers,teachersandtrainersinTaxBriefingNo.28–October1997pages19/20–availableontheRevenue website.),

• speeches/lecturesgivenbyguestspeakers,

• theprovisionofmaterialforopenanddistancelearningcoursesincludinganyelementofprofessional service involved in preparing or developing such courses which is part of the overall package of the provision of the material and which service is not charged separately to the customer.

23 Video ProductionPaymentsfortheproductionofavideobyaspecifiedpersonarenotsubjecttoPSWTprovided:

• thereisnoelementofconsultancyincludedintheserviceprovidedbythespecifiedpersonand,

• thevideoissubsequentlysoldbythespecifiedpersonasafinishedproducttotheaccountable person.

Wherethereisanelementofconsultancyinvolvedintheserviceprovidebythespecifiedperson,PSWT applies to the full amount of the payments.