Relevant Contracts Tax (RCT) is a tax deduction system whereby a Principal Contractor:
- deducts tax at 35% from payments to Subcontractors for whom he/she does not hold a relevant payments card, and
- maintains a record of payments to all Subcontractors regardless of whether he/she holds a relevant payments card for them.
Principal Contractors in the construction, forestry or meat processing industries must operate RCT on payments to Subcontractors.
A person who becomes a principal, must formally notify the Revenue Commissioners of that fact within 21 days of entering into his or her first relevant contract as a principal.
