529C Deduction of tax from relevant payments

Summary

A qualifying company making a relevant payment is obliged to deduct tax at the standard rate. However a specified person shall have the amount of relevant payment, which is to be subject to the withholding tax, reduced by expenditure incurred in the provision of artistic services if that expenditure would not have been disallowed by section 81. Penalties will apply where the qualifying company fails to deduct the withholding tax.

Details

In this Chapter-

(1) A qualifying company making a relevant payment shall deduct tax at the standard rate. The specified person will allow such a deduction.

(2) However where the specified person has incurred expenditure, which was not reimbursed or is not reimbursable, the specified person may make a claim to the Revenue Commissioners. Where a Revenue officer is satisfied that the amount of expenditure claimed would not have been disallowed under section 81, then a Revenue officer shall issue a notification to the qualifying company specifying the deduction to be made from the relevant payment. The qualifying company shall deduct the appropriate tax from the relevant payment having allowed the deduction on the notification issued by Revenue.

(3) Where a qualifying company fails to operate the withholding tax the qualifying company shall be liable for the tax which should have been deducted and a maximum penalty of €5,000.

Relevant Date: Finance Act 2019