New Relevant Contracts Tax (RCT) System

24 January 2012
Category: Legal Articles

Revenue introduced a mandatory electronic RCT system on 1st January 2012.  All payments made by Principal Contractors, even if the contract commenced prior to 1 January 2012, must  be made under this new system.  The current paper based system is replaced by an electronic system.  There will no longer be C2 payment cards, RCT 1, RCT 46/ 46A or RCT 47 forms and the annual RCT 35 will no longer be required.

There are three rates under the new system based on the history of compliance of the sub-contractor:

0% Subcontractors who currently satisfy the C2 card criteria
20% Subcontractors who have a substantial compliance record
35% Subcontractors who are unknown to the revenue or have a history of serious non compliance

Subcontractors who are registered for RCT in the old system are automatically registered for RCT in the new system if they are registered for ROS.  If not registered, Principals should register immediately.

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