Relevant Contracts Tax

Overview

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.

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Potential issues

  • You are sub-contracting work and unsure if you should be operating RCT on payments you are making to subcontractors.
  • You would like to ensure that your business is RCT compliant and has appropriate system controls in place so that RCT is operating efficiently in your organisation.
  • You are unaware of whether the legislative changes introduced in Finance Act 2012 which has broadened the scope of RCT brings your business within the scope of RCT.
  • You have made payments to subcontractors without operating RCT and now wish to address any RCT exposure for the company.
  • You are faced with a RCT Revenue Audit.
  • You would like to reduce your business’ RCT rate as a subcontractor from 35% to a 0% or 20% rate.
  • You have had RCT withheld from payments made to your business and now wish to obtain a RCT refund from Revenue.

How can we help?

  • Advising on the scope of RCT and how it applies to your business.
  • Advising on your compliance requirements, including Irish RCT reporting and filing obligations.
  • Helping you with 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.

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Contact us

Emer O'Sullivan

Director, PwC Ireland (Republic of)

Tel: +353 1 792 6695

Elaine O'Rourke

Senior Manager, PwC Ireland (Republic of)

Tel: +353 1 792 5098

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