RCT Registration
The Relevant Contracts Tax (RCT) rates in Ireland are 35%, 20% and 0%.
Non-resident subcontractors are automatically subject to the 35% rate. However once a subcontractor is registered for RCT the rate will decrease to 20%.
A non-resident taxpayer, to register for RCT purposes, must complete the appropriate form and file it with the Revenue Commissioners. It can take 3-4 weeks for the registration process to be completed.
Once registered, and the RCT rate is at 20%, it may be possible to make an application to have the rate decreased to 0%.
These applications are dealt with in date order and can take up to 6-8 weeks to process. Furthermore, the applications forms must be verified by the tax authority in the subcontractor’s local jurisdiction.
RCT Refunds
In terms of the interim period where the 20% RCT rate is being applied, it is possible for a non-resident subcontractor to seek a RCT refund during the year.
A separate application form must be prepared and submitted to Revenue’s International claims section.
The application form may be submitted after the first payment at the 20% rate.
It can take up to 10 weeks to process refund applications.
However, if an application is submitted on say 1 August and it is not processed by Revenue until say mid-October, any other applications forms received in the interim period should all be processed at the onetime i.e. in October.