Film Withholding Tax

Ken FlemingFWT Unit

25 November 2014

Todays Presentation

• Legislation and Regulations• Who?• What?• How?• When?• Expenses Claims• FWT Unit

Legislation and Regulation

Film Withholding Tax (FWT) introduced by section 25 Finance (No. 2) Bill 2013

Included as sections 529B – 529M TCARegulations, regarding details to be

included on tax returns and expenses claims, currently with the AGs

FWT is subject to Ministerial commencement order

Will commence at same time as the new section 481 credit.

Who?

• Tax operated by the Qualifying Company

• Artistes resident outside the EU/EEA Actors, voice over artistes Artiste does not include, directors,

producers, cameramen etc.

• Payments for artistic services

• Specified Person

What?

All payments for artistic services Whether made directly or indirectly.

Withholding Tax at the rate of 20%

Does not include payments subject to PAYE or legitimate expenses.

Ireland/USA Tax Treaty - $20,000

How? - Certificates of Deduction

Obtain required details from the specified person

On making a payment deduct withholding tax

Issue a certificate of deduction to the specified person Secure Form Available from FWT unit Keep part 2 for your records

How? - Tax Return to Revenue

Monthly Return•Available on request from the FWT unit•Preformatted excel spreadsheet•Details of the company, the payment and the payee•Secure upload through the Revenue Online Service (ROS)•Transferred to the FWT Unit

How? - Payments

Monthly Payment

Transferred to Revenue by Electronic Fund Transfer

Bank Account information will be made available.

When - Important Dates • Withholding Tax expected to start 1 Jan 2015

• Does not apply to existing productions

• Only applies to companies who will be approved for the new film tax credit

• Returns and Payments due by the 23rd of the month which follows the month in which a payment was made (payment made in Feb 2015 so return and payment due on 23rd March 2015)

Expenses Claims • Claim can be made prepayment or post

payment on a designated claim form

• Pre-payment Revenue will determine the claim and advise

the company to reduce the amount of the payment which is to be taxed by the amount of the allowable expenses

• Post payment Revenue will determine the claim and make a

repayment to the specified person

FWT unit

• Detailed information to be posted on Revenue website.

• Contactable at fwtunit@revenue.ie Requests for forms Provide help and assistance Update website information with common

issues and FAQs

• Will monitor compliance and process expenses claims.

Thank You