# RCT Monthly Return (Construction)

Country: Ireland
When: 23rd of the month after the RCT period (ROS).

Relevant Contracts Tax monthly return for principal contractors in construction, forestry and meat processing. Filed and paid by the 23rd of the month following the period. RCT is a withholding tax on payments from principal contractors to subcontractors in construction, forestry and meat processing. The sectors include some haulage for hire. Revenue's page says all RCT compliance, filing and payments are conducted online through ROS.

## Who this applies to

- Principal contractors in construction sector
- Principal contractors in forestry and meat processing
- Any business engaging subcontractors above €5,000 in those sectors

## What to file

Site Identification Number (SIN), payment notifications and deduction summaries via ROS. Revenue sets the deduction rate for each subcontractor at 0 per cent, 20 per cent or 35 per cent, depending on the subcontractor's tax compliance record: up to date gives 0 per cent, substantially up to date gives 20 per cent and a poor record or no registration gives 35 per cent. Revenue has announced that a new electronic withholding tax will replace this system, so check Revenue's current guidance before relying on the three rates.

## How to file

Online through ROS using e-RCT system.

## Payment due

Same date as return: RCT withheld must be paid to Revenue. The principal contractor must pay the RCT deducted by the 23rd of the month following the return period when filing and paying through ROS. A business with total annual RCT payments of up to €28,800 may be eligible to file and pay on a three-monthly basis.

## What happens if you miss it

Default rate of 35% RCT applies if subcontractor doesn't have a deduction rate determination. Penalties for failure to operate RCT can be significant.

## Submission checklist

- Register the contract on ROS before payment
- Get deduction rate (0%, 20%, 35%) from Revenue for each subcontractor
- Withhold RCT at the determined rate
- Submit deduction summary by the 23rd
- Pay RCT withheld to Revenue

## Documents you need

- Contract details and the subcontractor's tax reference number
- Revenue's deduction authorisation for each payment
- RCT deduction certificates issued to the subcontractor
- Invoices and payment records for each subcontractor

## Common mistakes to avoid

- Paying subcontractors before getting a deduction rate (35% default applies)
- Failing to register contracts on ROS
- Treating RCT and VAT incorrectly: they interact (Reverse Charge VAT in construction)
- Using an old deduction rate after Revenue has notified a new one for the subcontractor

Source: https://www.revenue.ie/en/self-assessment-and-self-employment/rct/index.aspx