Revenue E-Brief

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Revenue E-Brief Issue 32/2015, 24 March 2015

Amended Regulations for Relevant Contracts Tax (RCT)

Section 17 of Finance Act 2014 introduced a revised sanction where principals fail to operate Relevant Contracts Tax (RCT) on relevant payments to subcontractors. Revenue eBrief No. 110/14 outlined the revised penalty regime and advised that principals will be required to submit an unreported payment notification to Revenue in each instance where RCT was not operated.

Revenue has now made amended Regulations governing the operation of RCT, entitled Income Tax and Corporation Tax (Relevant Contracts Tax) (Amendment) Regulations 2015(S.I. No. 5 of 2015).

These Regulations amend the Income Tax and Corporation Tax (Relevant Contracts Tax) Regulations 2012 (S.I. No. 576 of 2012).

The amended Regulations provide for the submission of an unreported payment notification where a principal fails to operate RCT on a relevant payment to a subcontractor. It also sets out the information to be included on an unreported payment notification.

The Income Tax, Capital Gains Tax and Corporation Tax manuals, Part 18-02-09 and Part 18-02-04 have been updated to take account of the new Regulations.

24 March 2015