Under the RCT system the principal contractor is obliged to retain tax from the amount payable to the subcontractor/s engaged to carry out relevant operations. As a sub-contractor, you must report your income by completing an annual tax return which needs to be submitted to Irish Revenue by the 31st October following the end of the tax year.

eRCT Compliance system

The eRCT system that was implemented on 1st January 2012 introduced three rates of tax: 0%, 20% and 35%. A subcontractor’s rate depends on their own tax compliance history and status. Subcontractors who keep their tax affairs up to date and satisfy Revenue of certain criteria have the benefit of a 0% rate of RCT, i.e. they may receive payments without an RCT deduction. The new standard rate of 20% is applicable to all subcontractors who are registered with Revenue and who keep good compliance record. The 35% rate applies to not registered subcontractors or those with serious compliance issues to address.

Our team of tax experts can offer assistance to subcontractors on tax compliance issues. We know cash is the lifeblood of your small business – if you have enough you will thrive. We can help you submit an application to the Revenue for the zero percent rate of RCT in order to increase your cash flow.

Your dedicated Account Manager will advise you on important dates and filing deadline to ensure you are fully compliant with Revenue.