Relevant Contracts Tax

What is Relevant Contracts Tax (RCT)?

RCT applies to payments made by a principal contractor to a subcontractor under a relevant contract (this is a contract to carry out, or supply labour for the performance of relevant operations in the construction, forestry or meat processing industry). RCT applies to both resident and non-resident contractors operating in the construction, forestry or meat processing industry.

How does RCT work?

RCT applies to the following:

RCT does not apply to professionals such as architects, surveyors etc.


On 13 December 2011, the Minister for Finance signed the Commencement Order for the new RCT system which will apply from 1 January 2012. The current paper-based RCT system will be replaced by an electronic system, where principal contractors will be obliged to engage with Revenue online (mandatory electronic communication). From that date, all contacts between a principal (or agent on behalf of the principal) and Revenue will be through an online process - all principals in the construction, forestry and meat processing sectors will be obliged to submit information, data, payments and returns to Revenue electronically.

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