Required certification · Ireland
Revenue RCT (Relevant Contracts Tax)
Irish withholding tax on payments from principal contractors to subcontractors in construction, forestry and meat processing
Market position
Relevant Contracts Tax (RCT) is a withholding tax run by the Irish Revenue Commissioners on payments by principal contractors to subcontractors under relevant contracts in construction, forestry and meat processing. The principal deducts tax at 0%, 20% or 35%, set by the subcontractor's tax compliance record, and pays it over to Revenue. Subcontractors who are not registered with Revenue or have a poor compliance record face the 35% rate, which hits cashflow directly.
Ireland-specific note
Administered by the Revenue Commissioners and operated online through the Revenue Online Service (ROS). Principal contractors must register, notify every relevant contract and payment, and file monthly or quarterly deduction summaries. It is similar in mechanism to the UK Construction Industry Scheme (CIS), where contractors deduct money from subcontractors' payments and pass it to HMRC.
Pros
- + An up-to-date tax compliance record earns the 0% rate
- + All filing and payments are done online through ROS
- + Subcontractors can self-review their rate in ROS after fixing a compliance issue
- + RCT deducted is credited to the subcontractor and offset against PAYE, income tax, corporation tax or VAT once returns are filed
Cons
- − 20% or 35% withheld at source if the compliance record is not up to date
- − Unregistered subcontractors are deducted at 35%
- − Principals must notify every relevant contract and payment and file deduction summaries
- − Penalties of 3%-35% of the payment for principals who make unreported payments
Typical Ireland pricing
Revenue's RCT pages list no registration fee; tax is withheld at 0%, 20% or 35% of each relevant payment, depending on the subcontractor's compliance record
Why this matters for Ireland trades
Since 1 September 2026 it is illegal for anyone who is not a Registered Gas Installer to carry out domestic or non-domestic gas works (S.I. No. 106/2026), and the CRU says Safe Electric registration for electrical contractors is the law; Safe Energy Ireland runs both schemes for the CRU. Principal contractors deduct RCT at 0%, 20% or 35% from subcontractors’ payments and file through ROS. The Irish payroll tools listed here say they send payroll submissions to Revenue and handle My Future Fund auto-enrolment. The statutory Construction Industry Register Ireland (CIRI) is not yet mandatory: the CIF says applications open during 2027, and its Voluntary Construction Register runs until then.
Irish trades vendor selection is shaped by statutory registration (RGI for gas, Safe Electric for electrical contractors), Revenue payroll reporting under PAYE Modernisation, the My Future Fund auto-enrolment pension scheme that started on 1 January 2026, Relevant Contracts Tax (RCT) on payments to construction subcontractors, and SEAI’s Registered Contractor List for grant-funded home energy upgrades.
Frequently asked
Is Revenue RCT (Relevant Contracts Tax) a good fit for Ireland trades?
Relevant Contracts Tax (RCT) is a withholding tax run by the Irish Revenue Commissioners on payments by principal contractors to subcontractors under relevant contracts in construction, forestry and meat processing. The principal deducts tax at 0%, 20% or 35%, set by the subcontractor's tax compliance record, and pays it over to Revenue. Subcontractors who are not registered with Revenue or have a poor compliance record face the 35% rate, which hits cashflow directly. Administered by the Revenue Commissioners and operated online through the Revenue Online Service (ROS). Principal contractors must register, notify every relevant contract and payment, and file monthly or quarterly deduction summaries. It is similar in mechanism to the UK Construction Industry Scheme (CIS), where contractors deduct money from subcontractors' payments and pass it to HMRC.
What does Revenue RCT (Relevant Contracts Tax) cost in Ireland?
Revenue's RCT pages list no registration fee; tax is withheld at 0%, 20% or 35% of each relevant payment, depending on the subcontractor's compliance record. Pricing and availability can change by region; confirm current Ireland pricing on the vendor's site before committing.