Taxes Consolidation Act 1997 section 530P

Treatment of deducted tax

Section 530P sets out how relevant contracts tax (RCT) deducted by a principal from payments to a subcontractor is to be treated, including its credit against tax liabilities and the conditions for repayment.

• RCT deducted from payments to a subcontractor is treated as a payment on account of income tax (for individuals) or corporation tax (for companies) for the period in which the deduction was made.
• Deducted tax may be offset by Revenue against the subcontractor's other tax liabilities, and the subcontractor must be notified of any such offset.
• Once the subcontractor's income tax or corporation tax liability for a period has been finalised, any deducted tax not needed to meet that liability or already offset against other taxes may be repaid, subject to the general repayment rules in section 865.
• No amount of deducted tax may be credited, offset, or refunded more than once, and any amount that has been offset or refunded cannot subsequently be treated as a payment on account.