Relevant Contract Tax (RCT) is a withholding tax which applies to the industries of:
- construction;
- forestry; and
- meat processing.
As it is a withholding tax, it is sometimes mistakenly considered to be less important than other taxes. However, due to the significant liabilities which can arise (35% of amounts paid plus interest and penalties), it cannot be overly stressed how important it is to consider this tax.
At Grant Thornton, we have many years experience in the operation of this tax and can advise you in relation to all of your RCT obligations. We can assist with the myriad of application forms which must be completed by both parties to ensure the system is operated correctly and we can deal with Revenue on your behalf. Mistakes in relation to RCT can be extremely expensive and should not be underestimated.
Read our Relevant Contracts Tax factsheet