RCT or Relevant Contracts Tax applies to payments made by a principal contractor to a subcontractor under a relevant contract (this is a contract to carry out, or supply labour for the performance of relevant operations in the construction, forestry or meat processing industry). RCT applies to both resident and non-resident contractors operating in these industries.
In relation to the installation of water meters Revenue have issued an eBrief setting out their position that this is a construction operation for the purpose of RCT. This is the position regardless of whether the installation of the water meter takes place as a stand-alone operation or as part of the installation of a system of water supply. In eBrief No. 46/14 Revenue also confirm that Payments in respect of the hiring of plant and machinery with an operator is also considered a construction operation and therefore payments are subject to RCT. However, RCT does not apply where an operator is not provided with the machinery. Revenue eBrief No. 46/14 is published on the Revenue website.