Relevant Contracts Tax (RCT) applies to payments made by a principal contractor to a subcontractor under a relevant contract for construction, meat processing or forestry operations. Tax legislation obliges the “principal contractor” to retain tax from the amount payable to contractors/sub-contractors engaged to carry out relevant operations where for example the subcontractor’s tax affairs are not in order.

The administration of the system is conducted online through the Revenue’s online system (ROS).

We advise on the practical operation of RCT, we input contract notifications, payment notifications on behalf of principal subcontractors and review deduction summaries. In some instances we apply for the zero percent rate of RCT for some sub-contractors. We also apply to Revenue for a refund of RCT for resident and non-resident individuals and companies.

We also advise on the reverse charge for VAT mechanism so both parties to the contract are aware of the VAT obligations.