RCT for Non-resident contractors
Electronic RCT System
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
Relevant Contracts Tax applies to payments made by a principal contractor to a subcontractor under a relevant contract (this is a contract to carry out, or supply labour for the performance of relevant operations in the construction, forestry or meat processing industry). Payments to subcontractors in respect of a relevant contract are generally made under deduction of tax, but payments can also be made gross where the subcontractor satisfies certain conditions.
RCT applies to both resident and non-resident contractors operating in the construction, forestry or meat processing industry.
Non-resident contractors should familiarise themselves with their tax obligations (PDF, 87KB).
Refund of RCT deducted
Where a subcontractor has suffered a deduction of tax on payments made by a principal, the principal will have given the subcontractor a certificate of deduction (Form RCTDC). Subcontractors can apply to have the tax deducted, repaid or offset. Claims for repayment or offset by non-resident subcontractors should be submitted to:
International Claims Section,
Office of the Revenue Commissioners,
Collector General’s Division,
Government Offices,
Nenagh,
Co. Tipperary,
Ireland.
Telephone: +353 (0) 67 63400
Fax: +353 (0) 67 44182
e-mail: intclaims@revenue.ie
Individual applicants must complete a claim Form IC 1 (PDF, 38KB) . Company applicants must complete a claim Form IC 3 (30KB) . These forms are also available from International Claims Section upon request.
The completed claim form must be certified by the Tax /Revenue authorities of the country of residence for tax purposes in the tax year in which the income was earned. While certification currently covers a period of three years please note that Revenue can request certifcation in respect of a claim at any time . It should also be noted that the current three year period is subject to review.
Please note that a questionnaire must also be completed in respect of each contract undertaken by the non-resident
subcontractor. With regard to ongoing contracts, a copy of the original Questionnaire must be submitted with all follow on RCTDCs.
Details of the RCTDCs as per Question 3 of the Questionnaire should be furnished on a separate sheet. Download the
Questionnaire – Relevant Contracts Tax (PDF, 333KB).
Gross Payments
To qualify for payments without deduction of tax, the subcontractor must have a Form C2 and the principal contractor making the payment must have a valid relevant payments card (Form RCT 47).
Revenue may impose a limit on the amount of the payments that a principal contractor may make without deduction of tax, on relevant payments cards for certain subcontractors. This limit will be printed on the relevant payments card. Where the total payments to the subcontractor exceed the specified limit shown on the relevant payments card, RCT should be deducted from any payments in excess of this limit. Where RCT is deducted from the payment, the subcontractor should be given a completed RCTDC.
For C2 applicants, the qualifying criteria apply equally to resident and non-resident subcontractors. In the case of an applicant who has been resident outside of the State at some time during the qualifying period, they must have complied with all of the comparable obligations imposed by the laws of the country in which they were resident.
Note that an additional questionnaire must be completed by all non-resident applicants applying for a C2. This questionnaire is available from the above address or from the following link:
Questionnaire – Relevant Contracts Tax (PDF, 333KB).
Non-resident subcontractors should submit their applications to the City Centre District:
Revenue Commissioners,
RCT/VAT Section,
City Centre District,
9/10 Upper O'Connell Street,
Dublin 1, Ireland.
Telephone: +353 (0) 1 865 5000
Impact of the VAT Reverse Charge on Construction Services that are subject to RCT
Following the introduction of the VAT Reverse Charge on 1 September 2008, resident subcontractors providing construction services (that are subject to RCT) to principal contractors will still be required to register for VAT, subject to the normal VAT rules. However, these subcontractors will no longer be obliged to charge and account for VAT on construction services (except haulage for hire) supplied to principal contractors.
From 1 September 2008, non-resident subcontractors who provide construction services to principal contractors that are
within the scope of RCT (as defined in Section 530 of the Taxes Consolidation Act, 1997 but excluding haulage for hire), are
not required to register for VAT. Such subcontractors may however register for VAT, in order to claim credit for input VAT
incurred. Further information for subcontractors (PDF, 33KB).
Where the VAT Reverse Charge applies, principal contractors must account for the VAT as if they had supplied the service.
The VAT Reverse Charge does not impact on the VAT obligations of resident and non-resident subcontractors performing relevant operations in the meat processing or forestry industries or those involved in haulage for hire within the construction industry – these subcontractors will continue to be obliged to register for, charge and account for VAT, subject to the normal VAT rules.
Further information on the VAT Reverse Charge. Subcontractors are advised to consult the Revenue VAT Guide (PDF, 1.2MB) or
visit the VAT Section of the Revenue website to ascertain their VAT obligations.