Relevant Contracts Tax (RCT)
Overview
RCT is a withholding tax that applies to certain payments by principal contractors to subcontractors in the construction, forestry and meat-processing industries. The rates of tax are 0%, 20% and 35%.
All RCT compliance, filing and payments, is conducted online using the Revenue Online Service (ROS).
All principal contractors should ensure they are registered to use the ROS facility, if not already registered.
Subcontractors should also register for ROS in order to access details regarding their RCT transactions.
You can also register for RCT and other business taxes through ROS.
What activities are covered by RCT?
Construction
Construction activities under RCT include:
Constructing, altering, repairing, extending or demolishing:
- buildings or structures
- and
- works that are part of the land.
- Installing, altering or repairing:
- security systems
- lighting systems
- heating systems
- air conditioning systems
- soundproofing systems
- ventilation systems
- power supply systems
- drainage systems
- sanitation systems
- water supply systems
- telecommunication systems.
Cleaning buildings internally and externally in the course of their construction, alteration or repair (not including normal maintenance).
Works which are an essential part of, are in preparation for, or are completing other construction works. This includes:
- site clearing
- earth moving
- excavating
- tunnelling
- boring
- laying foundations
- erecting scaffolding
- site restoration
- landscaping
- and
- providing roadways and other access works.
Works that form an essential part of, are in preparation for, or complete works such as drilling for minerals, oil, natural gas or other natural resources.
Transporting someone else's materials or machinery for use in any of the activities listed above (known as haulage for hire).
Forestry
- thinning, looping, felling or planting trees in woods, forests or other plantations
- maintaining woods, forests and plantations
- preparing land for planting (this includes woods or forests that have been harvested)
- processing wood in sawmills or other premises
- and
- transporting someone else's materials or machinery for use in any activities listed above (known as haulage for hire).
Meat processing
- slaughtering certain animals and poultry
- catching domestic fowl, turkeys, guinea-fowl, ducks or geese
- cutting, boning, sorting, packaging, rewrapping or branding certain slaughtered animals and poultry (and any other similar processes)
- preserving or rendering the carcasses of slaughtered animals and poultry
- loading, unloading and hauling carcasses at any premises where the above activities take place
- cleaning any premises where the above activities take place
- grading, transporting and determining the sex of day-old chicks
- and
- transporting someone else's animals, poultry, materials, machinery or other goods connected to any of the activities listed above (known as haulage for hire).
Next: RCT for principal contractors