Following publication and debate of Finance (No.2) Bill 2023 Report Stage amendments last week, the Bill has been published, completing the final stage, and now moves to Seanad Éireann for further review and discussion. Report Stage amendments include legislation to address the tax treatment of General Medical Service (GMS) payments of certain medical practitioners (GPs) and removes operating leases from the scope of Section 38, for now.
The Report Stage amendment of the tax treatment of GMS payments of GPs provides that where GMS services are provided in the conduct of a partnership with other individual GPs, that income can be treated for income tax purposes as income of the partnership. The amendment also provides that the relevant partnerships may claim any professional services withholding tax (PSWT) credit attaching to the GMS payments of the partners. A joint election to treat the GMS payments as income of the partnership must be made by the relevant GP and the medical partnership. The contracted GP will provide the HSE with the tax reference number of the medical practice for the purpose of operating PSWT. The Institute welcomes the amendment as it has lobbied extensively on the matter, under the auspices of the CCAB-I.
The taxation of leases in Section 38 of Finance (No.2) Bill 2023 sees the substitution of the term ‘finance lease’ for ‘lease’ and addresses a number of other issues raised by stakeholders, including the CCAB-I, following the initial publication of the Bill. The effect of the amendment is to remove operating leases from the scope of section 38, for now. Operating lessors will continue to be taxed in line with the existing rules.
We will continue to keep readers informed of the progress of the Bill via Tax News.
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