INTERNATIONAL TAX

RELEVANT CONTRACTS TAX (RCT) MANAGEMENT

Construction and assembly withholding tax in Ireland

Those who pay should check - before it becomes expensive.

The Relevant Contract Tax (RCT) introduced by the Irish Revenue Commissioners is a mandatory withholding tax procedure that applies to payments made to subcontractors in connection with certain construction services. In addition to the traditional construction sector, it also applies to areas such as telecommunications, forestry, and meat production.

The aim of the RCT is to ensure that all companies operating in the industry are properly registered for tax purposes. Regardless of whether they are Irish or foreign companies, there is therefore a need for action.

Im Unlike other types of tax, RCT relates to the contractual relationship. For each relevant contract and each payment made under it, the main contractor must submit a contract notification and advance payment notification electronically to the Irish Revenue Commissioners before the payment is made. Compliance with RCT requirements is mandatory.

Are you working on a construction or assembly project in Ireland and faced with Irish construction withholding tax (“RCT”)?

Since not every construction project automatically falls under the RCT, it is necessary to check whether there is an RCT obligation before making any payment.

How does ICON support you in this?

Our experts will be happy to assist you with registration, reporting, and applying for construction withholding tax refunds, and will advise you in advance on whether the service in question is subject to construction withholding tax. This means we can help you ensure your RCT compliance.