Relevant Contracts Tax (RCT) is a Withholding Tax System that applies to payments made by a principal contractor to a subcontractor under a relevant contract i.e. a contract for the carrying out of, or the supply of labour for the carrying out of, relevant operations i.e. Construction operations, Forestry operations, Meat processing operations, within the State.
From the 1st January 2014, when the principal engages a subcontractor on various contracts, the principal will be required to notify each contract separately, except where the contract can be considered to be an on-going contract.
Please see links below for further information.
Relevant Contracts Tax FAQ - Jan 2014
New RCT System - FAQs for Principal Contractors
How does RCT work for a principal contractor?