Relevant Contracts Tax (RCT) is a withholding tax mechanism to ensure those involved in construction, forestry and meat processing operations are tax-compliant.
The legislation obliges a person (the principal contractor) to retain tax from the amount payable to contractors/sub-contractors engaged to carry out relevant operations in the absence of specific Revenue authorisations.
Finance Act 2011 introduced significant changes to the operation of the RCT system. The new online system is effective from 1 January 2012 and all RCT compliance is now conducted online using the Revenue’s Online Service (ROS).
For further information please follow the links below.
Our dedicated team can offer assistance with RCT advisory services as well as compliance issues from both a principal and/or contractor perspective, including dealing with Revenue audits. Read more about our services.
The Relevant Contracts Tax compliance system has undergone a complete transformation. The traditional collection of paper based forms, completion of monthly and annual returns, and even the familiar ‘C2 card’ or ‘C2 Authorisation’ has been replaced by the new online system with effect from 1 January 2012. More about the eRCT Compliance System.
RCT should be operated by businesses defined as principal contrators. A principal contractor may include property developers, building companies and all associated building trades, as well as individuals connected with these businesses. More about principal contractors.
Non-resident Principals who subcontract work are obliged to operate RCT. Non-resident subcontractors who carry out “relevant operations” in the construction, meat or forestry sectors in Ireland may also be subject to this withholding tax. More about non-resident contractors.