Taxes Consolidation Act 1997 section 523

Deduction of tax from relevant payments

Section 523 requires an accountable person to deduct professional services withholding tax (PSWT) from relevant payments, provides for refunds where medical expenses are overpaid, and grants the Minister for Finance power to make regulations governing the operation of PSWT in relation to health insurers.

• An accountable person must deduct appropriate tax from every relevant payment, and the recipient must accept the net amount; the payer is treated as having paid the full gross amount.
• Where a health insurer and a subscriber or member have both paid towards the same medical expenses, the practitioner or partnership must refund any excess over the actual fees to the subscriber or member.
• The Minister for Finance may make regulations to ensure the smooth operation of PSWT in relation to health insurers, including rules on how payments for medical expenses are made and on indemnifying individuals against related claims; such regulations must be laid before Dáil Éireann and may be annulled within 21 sitting days.
• The deduction of PSWT does not affect the computation of a specified person's profits or gains — the gross payment is included in taxable income, with a credit available under section 526 for the tax withheld.