Construction industry
If you are self-employed or a company resident in the State within the construction industry you must register for:
You may also need to register for Value-Added Tax (VAT), depending on your residency status and turnover.
If you have employees you must register as an employer and you must deduct from their pay, where appropriate:
Relevant Contracts Tax (RCT) is a withholding tax that applies to certain payments by principal contractors to subcontractors in the construction industry. You may be a principal contractor or a subcontractor, or both.
If you have already registered for the Revenue Online Service (ROS) or myAccount, you can use eRegistration to manage your Revenue registrations online.
Are you self employed or an employee?
It is important that your status as a worker is correct and that you are taxed accordingly.
If you are self-employed, you are responsible for the payment of your own:
If you are an employee, you will work under your contract of employment. Your employer is responsible for the collection and payment of your:
How is your employment status determined?
The Supreme Court judgment in the Karshan case outlines five questions to help determine your status as a worker for taxation purposes. This five-step decision making framework will be applied by the business engaging you to determine whether you are an employee or self-employed.
The five-step decision-making framework involves the following questions:
- Does the contract involve the exchange of a wage or other remuneration for work?
- Has the worker agreed to provide their services personally and can they sub-contract their work?
- Does the business control what, how, when and, or where the work is done?
- What do the facts and circumstances say about the true nature of the relationship between the business and the worker?
- Is there a legislation that would change the answers to any of the above questions?
For further information, please see Determining the employment status of an individual. The Tax and Duty Manual Part 05-01-30 explains the decision-making framework in more detail and contains additional guidance and examples.
In addition, please see the joint Code of Practice on Determining Employment Status. This is a joint code between Revenue, the Department of Social Protection (DSP) and the Workplace Relations Commission (WRC). This code was revised in November 2024 following the Karshan case.
What do you do after your status is determined?
If you are self-employed, you must:
If you are an employee, your employer will deduct PAYE, PRSI, and USC from your pay.
Travel and subsistence payments
It is important that employers in the construction sector are fully aware of the conditions that apply to the payment of tax-free expenses.
Tax obligations of non-resident contractors
RCT applies to non-resident contractors operating in the construction industry. Non-resident contractors should be aware of their other tax obligations.