Important information on changes to the Relevant Contracts Tax (RCT) system from 1st January 2012. Please read carefully.
Revenue is introducing a mandatory electronic RCT system on 1st January 2012 for ALL principal contractors in the RCT system. There will be no paper RCT forms in future. To avoid any difficulties with paying subcontractors from 1/1/2012, you need to prepare for the new electronic system NOW.
From 1st January 2012, all contacts between a principal contractor and Revenue must be through an online process. You will be required to notify Revenue of details of all relevant contracts online. You will also be required to notify Revenue of each payment to a subcontractor (in advance of making the payment) to obtain confirmation on the amount of RCT, if any, to deduct from the payment. There will be three RCT rates: 0%, 20% and 35%.
What should you do to prepare for these changes?
You must be registered for the Revenue Online Service (ROS). Visit the Revenue website to register now. If you engage a tax advisor/agent/bookkeeper for RCT purposes they will need to be registered for ROS.
Principals with in-house software systems for RCT: Your system will have to be upgraded to cater for the new system. Ask your in-house technical experts or your software provider to visit the Revenue website for details (or email eRCTInfo@revenue.ie). If you are concerned about your ability to fully comply with the new RCT obligations by 1st January 2012, contact the RCT Section in this District immediately.
Visit the Revenue website (www.revenue.ie) to find out more about the new system and how Revenue will help you with the transition.
Revenue may hold information sessions nationwide, depending on local demand. Some of these sessions have already been arranged. See the attached for details of venues and how to book your place at a session. Further sessions may be arranged. An online information session will also be available. Visit the Revenue website for details.
Revenue is also writing to subcontractors to inform them about the changes. If you also act as a subcontractor, you should download a copy of the letter from the Revenue website.