Taxes Consolidation Act 1997 section 530E

Rates of tax

Section 530E sets out the rates at which relevant contracts tax (RCT) may be deducted from payments to subcontractors under the RCT system.

• RCT is deducted at 0% where Revenue have determined that the subcontractor qualifies as a zero-rate subcontractor, at the standard rate of income tax (currently 20%) where the subcontractor qualifies as a standard-rate subcontractor, or at 35% in all other cases.
• Where the subcontractor is a partnership, the rate of deduction is the highest rate that would apply to any individual partner in the partnership.
• The rate applied must reflect the most recent determination made by Revenue, or the most recent outcome on appeal.
• The principal contractor is responsible for applying the correct rate when making payments under a relevant contract.