Relevant Contracts Tax calculator
A principal contractor deducts RCT from the whole of each payment to you under a relevant contract, at the rate Revenue sets. Nothing is left out for materials.
It takes one amount, the payment before any deduction, and one of Revenue’s three rates: 0%, 20% or 35%. It gives two figures: the RCT deducted, and what you are paid.
The deduction is the payment times the rate, rounded to the cent. The office works out its own RCT figures the same way, so on the same amount at the same rate its figure is the one here.
RCT applies when a principal contractor pays a subcontractor under a relevant contract for construction, forestry or meat processing. The principal notifies Revenue of the contract, then of each payment before making it, all in ROS. Revenue answers each notified payment with a deduction authorisation stating the rate and the tax to deduct.
Your rate follows your tax compliance record. When tax is deducted, the principal gives you a copy of the authorisation, or its details.
A principal contractor is paying you €6,410.30 under a relevant contract.
When your Deduction rate is above 0%, a reverse-charged invoice to a customer whose type is Principal contractor shows what to Expect: the cash, and the RCT credit. That credit is this calculator’s figure on the whole invoice, at your rate.
When the balance left on that invoice is within €1 of the credit, Record a payment offers it. One press fills it in as Tax withheld at source, at the same rate, ready for Record it.
On the bigger plans, you type Revenue's deduction when you pay a subcontractor’s bill. The office’s own figure beside it is this calculator’s, at that subcontractor’s rate, with any difference shown.