Relevant Contracts Tax (RCT)

Relevant Contracts Tax (RCT) legislation needs to be considered regardless of the type of business you have. If your business sub-contracts any type of work you may have an obligation to withhold RCT from payments to contractors.

While the common perception is that it’s of relevance only to the construction, meat processing or forestry industries, a broad range of businesses can be within the scope of RCT. Some recent examples of non-construction type companies having RCT obligations include hospitals, banks, telecommunications companies, supermarkets, energy and utility companies and local authorities.

Given that the costs of not operating the correct RCT procedures are severe, it’s particularly important to consider RCT before undertaking any property or development related activity.

Is your business grappling with any of the following?

  • Understanding the scope of RCT and how it might apply to your business
  • Understanding the legislative changes introduced in Finance Act 2012 which has broadened the scope of RCT
  • Ensuring your business is RCT compliant and has appropriate system controls in place so that RCT is operating efficiently in your organisation
  • Operating Revenue’s online RCT (eRCT) system correctly including notifying contracts, notifying payments in advance to Revenue and ensuring monthly RCT deduction summaries are in order
  • Dealing with a RCT Revenue Audit
  • Reducing your business’ RCT rate as a subcontractor from 35% to a 0% or 20% rate and understanding the process of applying to Revenue for a RCT refund

How can we help?

  • Advice on the scope of RCT and how it applies to your business
  • Advice on your compliance requirements, including Irish RCT reporting and filing obligations
  • Advice in relation to RCT registration
  • Assisting with unprompted / prompted qualifying voluntary disclosures with Revenue to ensure you receive the maximum mitigation of tax geared penalties
  • Managing risk by carrying out RCT reviews or health-checks
  • Assisting with pre Revenue Audit/Disclosure reviews and managing the Revenue audit and tax disclosure process to ensure the best possible outcome for your business
We also work with a number of subcontractors and provide advice in the following areas:
  • Advice on the scope of RCT and how it applies to your business
  • Advice in relation to RCT registration
  • Assisting companies in reducing their RCT rate as a subcontractor
  • Obtaining RCT refunds for both resident and non-resident companies