RCT Principals

Implications for you of eWHT

If you are currently an RCT principal, you will be become a Designated Withholder (DW).
You will have to operate the eWHT system.
RCT will no longer be operated.
The existing three rates of RCT – 0%, 20% and 35% will no longer apply. They will be replaced by:
- a Personalised Deduction Rate (PDR) for payments to individuals
- and
- a flat rate deduction for payments to a corporate, partnership or other entity.
Contract Notifications will continue to be required for contracts in the construction sector only. They will no longer be required for contracts in the meat processing and forestry sectors.
It is intended that you will send contract notifications (if applicable) and payment notifications to Revenue. This will be done via an Application Programming Interface (API). This means your IT system will send this information as part of your contracts and payments processes.
Revenue is proposing that we will send you deduction authorisations via API. This means your IT system will receive the rate to be applied to the payment.
This will be a real time data exchange between your system and ours.

eWHT will apply to the same range of principals as RCT does now.
eWHT will apply to the same range of services as RCT does now.
Many features of the current RCT regime, e.g., contract notifications, payment notifications and deduction authorisations will continue to be important parts of eWHT.
Contract notifications will no longer required for contracts in the meat processing and forestry sectors.
Revenue will continue to compile your monthly return from information sent to us. You may amend or accept by 23^rd of the following month.
This model will interact seamlessly with your natural systems and will minimise your operational and administrative burden.
Tax agents currently acting for RCT principals will be able to continue acting on their behalf in the new regime.

eWHT will create a simplified and modern withholding tax framework across all self-employed withholding taxes. This will align with digital transformation goals and international best practices.
eWHT will allow you to significantly streamline your business processes and reduce your administrative burden.
Your withholding tax reporting obligations will be integrated into your normal payment process.
Where you are also currently an accountable person for PSWT, you will operate one aligned withholding tax.
Revenue will continue to compile your monthly return from information sent to us. You may amend or accept by 23^rd of the following month.
Integration of tax into your payment process will increase the accuracy of the data, preventing costly and time-consuming errors.

We would like to get your feedback on what we are proposing.