RCT in Ireland

RCT in Ireland

MYG CONSULTING team is responsible for managing the RCT for the client. This is mandatory when a Spanish company or any other part of the world is hired to work in Ireland.

You must have a written contract with the Irish company. In MYG Consulting, we make the management to determine if it is covered by the Tax on Relevant Contracts (RCT).

If RCT is not relevant, the contractor receives the payment in the normal manner. However, if any of these terms and conditions apply, it is likely that the Revenue requires you to retain a PERCENTAGE% of the contract rate, to ensure that future taxes are paid.

  • RCT does not apply to professionals such as architects, surveyors, etc.
  • Schools do not have the right to claim VAT on goods or services
  • All transactions with Income must be made electronically through the Online Income Services (ROS)
Tax on relevant contracts (RCT)

RCT is a withholding tax that is applied to certain payments from prime contractors to subcontractors in the construction industry. The tax rates are 0%, 20% and 35%. All ECA transactions must be sent through ROS.

On the basis that we can consider who is a prime contractor?

The Board of Directors of a school is a prime contractor. Major contractors must be registered in Revenue and all transactions with Revenue must be made electronically through the Online Revenue Service (ROS). The construction activities covered by RCT include:

  • Construction Workn
  • Cleaning of internal and external buildings during its construction.
  • Works that are an essential part of other construction work.
  • Transport the materials or machinery of another person to use in any of the activities listed above (known as transportation for rent) .

M&G Consulting - Asesoría Fiscal y Contable Madrid

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Construction activities under ECA include:

  • Buildings or structures:
    • Works that are part of the earth.
    • Install, alter or repair:
    • Security systems
    • Lighting systems
    • Heating systems
    • Air conditioning systems
    • Soundproofing systems
    • Ventilation system
    • Power supply systems
    • Drainage systems
    • Sanitation systems
    • Water supply systems
    • Telecommunications systems
    • Cleaning of buildings internally and externally in the course of their construction, modification or repair (not including normal maintenance)
      • The works that are an essential part of, are in preparation for or are completing other construction work. This includes:
      • Site cleaning
      • Earth movements
      • Digging
      • Tunneling
    • Laying foundations
    • Erecting scaffolding
    • Site restoration
    • Landscaping
    • Providing roads and other access works.
  • Works in AIRPORTS.