Relevant Contracts Tax (RCT)

RCT is a withholding tax that applies to certain payments by principal contractors to subcontractors in the construction, forestry and meat-processing industries. The rates of tax are 0%, 20% and 35%.

All principal contractors should ensure they are registered to use the ROS facility if not already registered. From this the relevant contracts and payments must be set up in advance.

Subcontractors should also register for ROS in order to access details regarding their RCT transactions and the applicable rate.

The scope of works that are included under RCT is vast and it is not always clear cut.