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[Rat Catcher]

From Revenue via ROS

eWHT - expansion of withholding tax to the platform economy

The Department of Finance and Revenue have launched a joint Public Consultation on the
expansion of withholding tax to the platform economy, the introduction of personalised
deduction rates to a new modernised withholding tax regime for self-employed workers, and
the modernisation of Professional Services Withholding Tax (PSWT) and Relevant Contracts
Tax (RCT).

The proposed expansion of withholding tax to the platform economy will affect digital
platform operators that facilitate the provision of services through a digital platform and route
payments for these services from the recipient of the service to the service provider.
The expansion proposal seeks to:

 Ensure that specific digital platform operators will have responsibility for withholding
and reporting tax on payments made to service providers operating on the platform.

 Ensure that the exchange of data between digital platform operators and Revenue
will take place via an Application Programming Interface (API) to facilitate the real
time data exchange.

As part of this consultation process, the Department of Finance and Revenue are seeking
views from all stakeholders about the benefits, challenges and opportunities presented by
the expansion proposal. As taxpayers that would be affected by this modernisation proposal
include platform operators and platform workers, we invite you to provide feedback through
this consultation process.

Revenue’s eWHT Consultation Hub is the one stop shop for the consultation process. It
contains general information on the background, objectives, and features of the
modernisation proposal. Additional content outlines in detail how new and existing
stakeholders will be affected and how eWHT will work for them.

The consultation period will end on Friday 30 January 2026.

It is important that all stakeholders operating in the digital platform space are informed of,
and engaged in, the consultation process. As such, we would welcome your assistance in
raising awareness of the consultation with platform workers operating in your sector by
sharing information on the consultation process through your usual communication
channels.

We welcome your engagement with the consultation process and look forward to receiving
your valued feedback.

Thank you.

Consultation Hub Link:

https://www.revenue.ie/en/corporate/consultations-and-submissions/ewht/index.aspx

[Rat Catcher]

It is important that all stakeholders operating in the digital platform space are informed of,
and engaged in, the consultation process. As such, we would welcome your assistance in
raising awareness of the consultation with platform workers operating in your sector by
sharing information on the consultation process through your usual communication
channels.

You're welcome!

[silverbullet]

What does it mean for us mere mortals?

[watty]

My guess.  If approved, the apps will withhold some of the fare and pay some of your tax to Revenue on your behalf.  Each app will give you a statement at the end of the year on how much tax they paid on your behalf and then you can sort it all out when you do your tax returns. 

This will probably give the apps an excuse to charge us an admin fee on top of all the other extras they skim off us 

[Rat Catcher]

You can share your opinion on rideshare platforms deducting income tax at source.... by clicking the link in the OP.

The way it will most likely work is that the rideshare platforms will withhold a given % (e.g. 20%) of your payments and that would be deducted from your tax bill or added to your rebate when you file your return.

The issue I see is that the rideshare platforms don't process all payments directly i.e. in some cases you collect cash/card payments yourself so that could make it a tad messy. If it only applies to payments the rideshare platforms handle (which is most likely) it won't achieve it's objective to any significant extent whereas if it applies to payments for all jobs dispatched by rideshare platforms the deductions could exceed payments made by the rideshare platforms.

[vandriver]

Could this apply to credit card processors?That's 60% of my m9ney these days.

[Bob Shillin]

It would increase the value of the apps to the Revenue, and possibly make the powers that be more anxious t ensure that the apps were always solvent, and in no danger of going bust, i.e. ensuring that they earned "healthy" commission. It would really be transforming the apps into employers.

[watty]

Could this apply to credit card processors?That's 60% of my m9ney these days.

I'd imagine there would be a mechanism for you to declare that a taxi app is withholding your tax and not the CC processor?  Otherwise, how would, e.g., Sumup tell the difference between a taxi fare and a mate repaying you some money he owed you?



Jeez, you have to do a bit of digging to find out what the 'platform economy' is 

https://www.oecd.org/content/dam/oecd/en/publications/reports/2020/07/model-rules-for-reporting-by-platform-operators-with-respect-to-sellers-in-the-sharing-and-gig-economy_379520db/d7973047-en.pdf

A “Platform” means any software, including a website or a part thereof and applications, including
mobile applications, accessible by users and allowing Sellers to be connected to other users for the
provision of Relevant Services, directly or indirectly, to such users. The operations of the Platform may
also include the collection and payment of Consideration in respect of Relevant Services. The term
Platform does not include software exclusively allowing the:
a) processing of payments in relation to Relevant Services;
b) listing or advertising of Relevant Services; or
c) redirecting or transferring of users to a Platform
without any further intervention in the provision of Relevant Services.

[Rat Catcher]

The two points of interest are "specific... operators" and Revenue establishing an API interface. Maybe NTA could regulate for "specified" dispatch operators... be that by using their own criteria or adopting Revenue's eventual definitions?