Increased Revenue Compliance
Tax update for businesses engaging contractors for construction, repair or installation activities
Revenue eBrief No. 77/15 confirms that taxpayers can expect increased compliance intervention as Revenue heightens its activity in this area following the launch of a new project.
Relevant Contracts Tax (RCT) is a withholding tax regime operated on certain payments.
Although often considered applicable to only a limited number of industries (e.g. construction, meat processing, forestry), RCT extends to telecommunications, mining and drilling, renewable energy, facility management services, supply of staff and more.
RCT legislation should be considered irrespective of the nature of your business. If your business engages contractors, then you may have a requirement to operate RCT.
From an Employer Taxes perspective, Revenue will seek to ensure the correct classification of contractors on-site. Where Revenue conclude that workers are employees and not contractors there will be implications for the business engaging those individuals with respect to PAYE and PRSI.
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