Electronic RCT System
On 13 December 2011, the Minister for Finance signed the Commencement Order for the new electronic RCT system which was introduced on 1 January 2012. All principal contractors in the construction, forestry and meat processing sectors are obliged to engage electronically with Revenue and should:
- Notify Revenue of all contracts online (Contract Notification)
- Notify payments online (Payment Notification)
- Provide a copy or details of the Deduction Authorisation to the Subcontractor
- Submit monthly/quarterly returns online (Deduction Summary / Return)
- Make payments of RCT deducted
The Revenue Commissioners have made regulations, entitled 
Income Tax and Corporation Tax (Relevant Contracts Tax) Regulations 2011 (S.I. 651 of 2011) (PDF, 72KB), and Income Tax and Corporation Tax (Relevant Contracts Tax) Regulations 2012 (S.I. No. 576 of 2012) (PDF, 69KB), which set out the detailed provisions governing operation of the scheme. The legislative framework for the new scheme is contained in sections 530A to 530V of the Taxes Consolidation Act 1997.
Important: Companies with in-house RCT software systems
Revised procedures for Tax Clearance in respect of Public Service Contracts, Grants, Subsidies and similar type payments (Department of Finance Circulars 43/2006 and 44/2006) (PDF, 30KB) - Updated 26th July 2012
Information for Subcontractors on the new RCT system
Changes to the operation of Relevant Contracts Tax (RCT) - Online Information Session
Changes to the operation of Relevant Contracts Tax (RCT) - Information Session (slide
presentation) (PDF, 1MB)
Transitional arrangements: Revenue assisted principals in their transition to the new RCT system in the following ways:
- Revenue froze the RCT rates (PDF, 86 KB) of all subcontractors between 1st January 2012 and 31st March 2012. This transitional arrangement will end on 31st March 2012. Principals need to be aware that subcontractors’ rates may change at any time from 1st April 2012 onwards.
- The Requirement to notify multiple contracts (PDF, 15KB) in the new system has been relaxed for 2012.
- Assistance with notification of contracts entered into before 31/12/11 that will still be in place in 2012
As part of the contract conversion process Revenue automatically populated the new system with contract information for the principal using data from the principal’s 2010 RCT 35 return and their 2011 RCT 47’s issued (unless the principal advised Revenue that he/she wished to opt out of this process. Full details on this transitional arrangement are available (PDF, 30KB)
- FAQs on new system - 2012
- Letter to Subcontractors (Information Leaflet) - August 2012 (PDF, 13KB)
- Letter to certain Subcontractors (regarding compliance) - January 2012 (PDF, 11KB)
- Letter to Subcontractors (RCT rate) - December 2011 (PDF, 60KB)
- eRCT Information Sessions October - November 2011 (PDF, 107KB)
- Letter to principal contractors - October 2011 (PDF, 27KB)
- Letter to Subcontractors - October 2011 (PDF, 53KB)
- Letter to principal contractors - July 2011 (PDF, 31KB)
- Letter to agents - July 2011 (PDF 27KB)
- Information leaflet - July 2011 (PDF, 230KB)
- Information Note No. 03 - June 2011
- Information Note No. 02 - February 2011
- Information Note No. 01 - December 2010
- eBrief No. 67/2011: Relevant Contracts Tax (RCT) - Important note relating to C2 applications
- eBrief No. 43/2011: Changes to the operation of Relevant Contracts Tax (RCT)
- eBrief No. 34/2011: Changes to the operation of Relevant Contracts Tax (RCT)
- eBrief No. 12/2011: Changes to the operation of Relevant Contracts Tax (RCT)