Required certification · Ireland
Revenue RCT (Relevant Contracts Tax)
Ireland’s mandatory withholding-tax system for payments to construction subcontractors
Market position
RCT is a statutory withholding tax on payments from principal contractors to subcontractors in construction (and forestry/meat processing). Any tradesperson working as a subcontractor must be in the system, because their compliance record sets the deduction rate at source — 0%, 20% or 35%. Poor or absent compliance means 35% withheld, directly hitting cashflow. It is the Irish counterpart to the UK’s CIS.
Ireland-specific note
Administered solely by the Irish Revenue Commissioners; applies only to relevant operations in Ireland; the Irish equivalent of the UK’s Construction Industry Scheme (CIS).
Pros
- + Free to register and operate
- + Good compliance record earns the 0% rate
- + Fully online via ROS
- + Rolling Bulk Rate Reviews can lower your rate automatically
Cons
- − Cashflow hit (20%/35% withheld if not fully compliant)
- − Heavy admin for principals (notify every contract + payment)
- − ROS/eRCT mandatory and complex for sole traders
- − 35% penalty rate auto-applies on error
Typical Ireland pricing
Free (statutory tax regime; all compliance via free ROS)
Why this matters for Ireland trades
Gas work requires Registered Gas Installer (RGI) status and electrical work requires Safe Electric registration, while payroll/accounting must handle Revenue PAYE Modernisation (real-time reporting), RCT, and VAT.
Irish trades vendor selection is shaped by statutory registration (RGI for gas, Safe Electric for electrical), Revenue PAYE Modernisation real-time reporting, RCT for construction subcontractors, and VAT.
Frequently asked
Is Revenue RCT (Relevant Contracts Tax) a good fit for Ireland trades?
RCT is a statutory withholding tax on payments from principal contractors to subcontractors in construction (and forestry/meat processing). Any tradesperson working as a subcontractor must be in the system, because their compliance record sets the deduction rate at source — 0%, 20% or 35%. Poor or absent compliance means 35% withheld, directly hitting cashflow. It is the Irish counterpart to the UK’s CIS. Administered solely by the Irish Revenue Commissioners; applies only to relevant operations in Ireland; the Irish equivalent of the UK’s Construction Industry Scheme (CIS).
What does Revenue RCT (Relevant Contracts Tax) cost in Ireland?
Free (statutory tax regime; all compliance via free ROS). Pricing and availability can change by region — confirm current Ireland pricing on the vendor's site before committing.
Is Revenue RCT (Relevant Contracts Tax) recommended?
Yes — it is a Tier S (Recommended) pick in our Ireland directory for required certification, based on market fit and reputation. Still compare it against the alternatives for your specific trade and region.