About C2 Cards

The RCT system is a witholding tax system where a Principal Contractor deducts tax at 35% from payments made to a subcontractor, unless the principal holds a relevant payments card [RCT 47] for that subcontractor.

The C2 is a key document in the operation of the RCT system.

What is a C2?

A C2 is a certificate of authorisation issued by Revenue to a sub-contractor. It allows a principal contractor to apply to Revenue for a relevant payments card (RCT47) for the sub-contractor. The actual C2 is a personalised card similar to a credit card. It has a full-face photo and signature of the subcontractor or nominated user.

A nominated user is generally a director of a company, a partner in a partnership or an employee of a business who has been authorised by the company, partnership or business to produce the C2 and fulfil their obligations. If the business is involved in numerous contracts in different locations there can be more than one nominated user and each may get a C2.

pdfRevenue is changing the design of the C2 card over a two-year period. (PDF 68KB)

Why should a subcontractor apply for a C2?

A C2 is very useful to a subcontractor. It is designed to cut down on paperwork for sub-contractors who are up to date with their tax obligations and who fulfil certain conditions.

It allows the principal contractor to apply to Revenue for a relevant payments card (RCT47) for a subcontractor. Once the card has issued, the principal can pay the subcontractor gross during the period to which the relevant payments card relates. This will improve the subcontractor’s cash flow.

It is important that the payments card is received by the principal contractor before making payments gross (i.e. before making payments without deducting RCT).

A C2 is very important and should be looked after carefully.

Back to Top

What happens if a sub-contractor does not have a C2?

A principal contractor deducts RCT at 35% on all payments made to them unless he/she has received a relevant payments card for that tax year from Revenue. The principal contractor can only apply for the payments card if the sub-contractor has a C2 and has shown it to the principal contractor.

How can a subcontractor qualify for a C2?

To qualify for a C2, the subcontractor must meet the following conditions:

  • Be or be about to become a sub-contractor in the construction, forestry or meat processing industry
  • Trade from a fixed place of business with adequate equipment, stock and other facilities. The fixed place of business need not be within the State.
  • Keep proper and accurate records. All records relating to RCT must be kept.
  • Have a satisfactory tax record. This means that all tax due (Income Tax, VAT, PAYE/PRSI etc.) must be paid and all tax forms completed. Revenue generally examines the previous 3 tax years.
    If the subcontractor has been tax-resident in another country in the past three years, they will need to obtain a certificate from the Revenue Authorities in that country, confirming that they have complied with the tax laws of that country.
    In the case of a partnership, the tax history of the partnership and of each individual partner is examined.
    In the case of a company the tax history of the company and of each director/person associated with the company is examined.

Back to Top

How does a subcontractor apply for a C2?

A C2 may be applied for by:

  • Completing pdfForm RCT5 (PDF, 72KB) and Photocard Application (PC5), both of which are available from your local Revenue office
  • Give any information asked for e.g. a copy of the contract with the principal contractor.

The questions on the form are designed to ensure that the subcontractor qualifies for a C2.

Except in the case of non-resident subcontractors in the construction industry (see below), the application should be submitted to the subcontractor’s local Revenue office.

All applications for C2 cards from non-resident subcontractors in the construction sector should be sent to:

Revenue Commissioners,
Non-resident Unit,
City Centre District,
9/15 Upper O’Connell Street,
Dublin 1.

Non-resident subcontractors in the meat processing or forestry sectors should send their applications for C2 cards to the Revenue office located in the geographic area in which the contract will be performed.

How does a subcontractor collect their C2?

A C2 must be collected and signed for by the person whose name, photograph and signature appear on it. Details of collection points are notified to sub-contractors in advance. The sub-contractor should bring identification such as a driving licence, passport etc. with them, as they may be asked for at the collection point.

It should be noted that the C2 card remains the property of Revenue at all times.

Back to Top

Must I apply for a C2 each year?

A C2 is generally valid for a period of up to two years. In the case of subcontractors holding C2 cards that are due to expire at the end of the year, Revenue will review the entitlement of these subcontractors to renew their C2 card. Subcontractors having outstanding liabilities and/or returns will be contacted (by letter) and informed that a new C2 card for the following year will not issue until their tax affairs have been brought up to date. Once these subcontractors have brought their tax affairs up to date, they should contact their local Revenue office to confirm that their tax affairs are in order. This will help to ensure the timely issue of their new C2 card.

Full details on the Renewal of C2 cards where the expiry date of the C2 is 31st December 2009 are available in Revenue eBrief No.74/2009

What happens if Revenue refuses to issue a C2?

Where Revenue refuses to issue a C2 the applicant will be notified in writing. They may appeal this in writing to the Inspector of Taxes within 30 days from the date of the refusal. The appeal will be heard and determined by an Appeal Commissioner who is independent of Revenue.

Back to Top

How does a subcontractor use a C2?

When entering into a relevant contract, the sub-contractor, or the nominated user, should give the C2 card in person to the principal contractor for inspection or as an alternative, may nominate a bank account into which relevant contracts payments can be made. Where the Principal Contractor undertakes to make all Relevant Contracts Payments due to the Sub-Contractor into the nominated bank account, it suffices for the Sub-Contractor to provide details of his/her C2 and nominated bank account to the Principal Contractor. The principal contractor then completes Form RCT46, which must be signed by both parties. A form RCT 46 is an application for a relevant payments card. The principal contractor can only pay the sub-contractor without deducting RCT from the date this card is received.

Once the principal contractor has inspected the C2 card it should be returned to the sub-contractor immediately.

Under no circumstances should a principal contractor or anybody else keep a C2.

Can a C2 be cancelled?

Yes. A C2 is the property of Revenue and it may be cancelled at any time. This will happen if:

  • False or misleading information was given when the sub-contractor applied for the C2
  • Information has become available which, had it been available at the time, the C2 would not have issued
  • The sub-contractor allows their C2 to be misused
  • The sub-contractor fails to comply with their tax obligations in relation to the keeping of records, submission of returns and accounts and the payment of taxes
  • The sub-contractor is no longer sub-contracting or they change from being in business on their own account to a partnership or they incorporate a company. The partnership or company can apply for a C2 in its own right.

Where a C2 is cancelled, Revenue will notify the subcontractor in writing. The C2 must be sent back to Revenue as soon as the notice of cancellation is received. In addition, each principal contractor holding a payments card for that subcontractor will be instructed to deduct RCT at 35% from any further payments.

Back to Top

What change of circumstances affect a C2?

Any change of circumstances as a sub-contractor should be notified to Revenue immediately. Examples of changes are where:

  • A sole trader forms a limited company
  • There is a change of nominated user. In this event C2 should be returned and a new one applied for
  • A partnership ceases. C2 must be returned
  • There is a change of fixed place of business/address
  • There is a change of directors/shareholders in a company.

(Adobe Acrobat Reader PDFExternal link)

Back to Top


Print this page