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This relates to a previous question on Irish PSWT. Does a UK

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This relates to a previous question on Irish PSWT. Does a UK professional services company have to obtain a tax clearance certificate before doing business with an Irish public body where PSWT would apply?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Here is the Irish Government's explanation of PSWT: 'A withholding tax, at the rate of 20 per cent, is deductible at source from payments for "professional services" made to individuals and companies by "accountable persons" (Government Departments, local authorities, health boards, State bodies, etc.). The tax applies generally to fees and similar payments made by listed accountable persons but does not apply to payments already covered by PAYE or the construction industry tax deduction scheme. The tax also applies to payments made by health insurers under contracts of insurance to cover fees for services provided by medical practitioners in certain circumstances. The tax is charged on payments net of value-added tax.' Such with holding taxes are a common feature world wide in efforts to reduce tax evasion. Under the Double Taxation Convention between the UK and Ireland which precludes the same income stream from being taxed in both jurisdictions, any tax deducted by one country would be allowed as a tax credit against any liability in the other. The Convention does not however, protect from differences in rates of taxation. There would be no need to obtain a tax clearance before undertaking business with an Irish public body; they would merely withhold 20% of the fee charged. I do hope my reply has been of assistance.
Customer: replied 1 year ago.

Hi Keith

I don't think you are correct(?)

http://www.revenue.ie/en/tax/it/leaflets/guidelines-tax-clearance.html#section3


3. When is a general TCC required?


A current general TCC is required as follows:



  1. Public Sector Contracts
    A condition of obtaining a Public Sector Contract (Section 1095 Taxes Consolidation Act 1997) of a value of €10,000 or more, (inclusive of VAT), within any 12 months period, is that the contractor is required to produce either a valid C2 certificate or a general TCC. Such contracts can involve the purchase, hiring, leasing of goods, services or property by public authorities. Examples of the types of goods/services covered in such contracts are plant hire, cleaning or security, consultancies for management, legal or design services.
    The tax clearance requirement applies even where the provision of goods or services is not the subject of a formal written contract.

Expert:  bigduckontax replied 1 year ago.
Your original question was on Irish taxation, PSWS in particular, and the reply was based on that principle. No mention was made in the question of TCCs though it appears that they are required.
Customer: replied 1 year ago.

I think the latest question was perfectly precise, but no matter.

Expert:  bigduckontax replied 1 year ago.
Then clearly under the Irish Taxation regime if a Public Sector Contract of over 10K euros within twelve month of a previous contract then he TCC process applies.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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