Róisín Shortall (Dublin North West, Social Democrats)
Link to this: Individually | In context | Oireachtas source

128. To ask the Minister for Finance his views on matters raised in correspondence (details supplied); if he was aware of this issue with professional services withholding tax faced by GPs working in such organisations; if he intends to take steps to address this matter; and if he will make a statement on the matter. [25410/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Professional Services Withholding Tax (PSWT) is a deduction at the standard rate of income tax, currently 20%, from relevant payments made by accountable persons to specified persons in respect of certain professional services. The tax deducted is a payment on account against the specified person’s final Income Tax or Corporation Tax liability for the year, with the amount of PSWT deducted credited against the tax liability for that year. A specified person can include businesses undertaken through a company, sole trade or partnership.

Accountable persons include Government Departments, State agencies and bodies, local authorities, colleges and authorised medical insurers.

The range of professional services that come within the scope of PSWT is extensive and includes services of a medical, dental, pharmaceutical, optical, aural or veterinary nature.

A charity which is registered with the Charities Regulator can apply to Revenue for the charitable tax exemption provided for in section 207 of the Taxes Consolidation Act 1997. Where a body is granted the charitable exemption status by Revenue, payments to it by an accountable person are not subject to PSWT.

I am advised by the Department of Health that GPs are private contractors, most of whom hold GMS contracts with the HSE for the provision of services without charge to medical card and GP visit card holders. GMS contracts are held by individual GPs and payment for the related services is made by the HSE Primary Care Reimbursement Service to the GP concerned.

My Department and Revenue are aware of the issues arising for certain taxpayers regarding refunds of PSWT, where those refunds arise on foot of payments made by the HSE under General Medical Services (GMS) scheme contracts. Discussions have taken place between officials from Revenue, the Department of Finance and the Department of Health on this matter. Revenue are working to clarify the issues and hope to soon be in a position to issue guidance on this matter.

Finally, the Deputy may also wish to note that the Minister for Health recently published the Terms of Reference for a Strategic review of General Practice which will be completed this year. The review, with input from key stakeholders, will examine the broad range of issues affecting general practice.