Income Tax (RCT Regulations 2004)
The Revenue Commissioners have announced changes to the regulations governing Relevant Contracts Tax (RCT) which will mean that from 1st January 2005 all new principal contractors must formally register with Revenue. Under the new regulations a person who becomes a principal contractor must inform Revenue within certain time limits.
People who are already principal contractors and have already indicated this to Revenue will not have do anything further, in most cases. All principal contractors to be included on the new register will be notified by Revenue.
The new regulations also require principal contractors to inform Revenue of any changes which occur in the details held on the register.
The regulations provide a formal registration procedure for RCT to bring it into line with other taxes such as VAT or PAYE.
Full details of the registration requirements are contained in the new Regulations, copies of which can be purchased from the Government Publications Sales Office, Alliance House, Molesworth Street, Dublin 2 or through any bookseller - price €2.54. They can also be accessed on the Revenue website (www.revenue.ie).
Additional Information
RCT applies to payments made by principal contractors to subcontractors in the construction, meat processing and forestry industries. The new Regulations are effective from 1 January 2005.
Employers and VAT registered persons are required to formally register with Revenue in relation to the operation of the PAYE and VAT systems, respectively, no similar requirement existed up to this as regards principal contractors and RCT, even though their relationship with Revenue as regards the deduction and remittance of RCT is also a fiduciary one. The new Regulations remedy this.
Ends 07/12/2004