Call for COVID moratorium professional services withholdings tax

Given the current circumstances, and the cash flow problems many small service providers are experiencing, the minister should consider a moratorium on all F45 tax withholdings for a number of weeks. At a minimum F45 should be moved to a electronic form. This would remove the need for service providers to physically collect F45 forms from their place of work.

Update 6th May 2020: Revenue has agreed to streamline the process as outline here

Currently state and semi-state entities withhold 20% of fees paid to professional service companies. The amount withheld is confirmed to the service provider using a paper F45 form which the service provider can use to offset against its own tax payments.

Given the current COVID-19 crisis Neasa Hourigan, Green Party Spokesperson on Finance, is calling for the Minister for Finance to:

• consider a moratorium on all F45 tax withholdings for a number of weeks to alleviate the cash flow problems many small service providers face
• move the F45 to an electronic form. This would remove the need for service providers to physically collect F45 forms from their place of work