eRCT Bulk Rate Review

The eRCT bulk rate review is an integral part of the eRCT system and provides a facility for Revenue to automatically review sub-contractor RCT deduction rates.

A Bulk Rate Review consists of a review of the RCT deduction rates of all sub-contractors registered in the eRCT system based on their tax compliance over the previous three years to date. The review is run on a periodic basis in any given year. The most recent Bulk Rate Review took place on Friday 21 February 2014 and as a result 19,130 contractors had their RCT deduction rates amended either upwards or downwards, depending on their compliance track record.

All sub-contractors who have had their RCT deduction rate amended on foot of the Review, and their relevant principals, are in the process of receiving a notification advising them of the rate changes.

Rate Determination

Rate changes are based entirely on real-time compliance data over the last three years and are amended, either upwards or downwards, accordingly. In general,

• a 0% (zero) rate will apply where a subcontractor is fully compliant with his/her tax obligations
• a 20% rate will apply where a subcontractor is substantially compliant, and
• a 35% rate will apply where the subcontractor is unknown to Revenue or has compliance issues that are not being addressed.

Home Renovation Incentive Scheme

Please note - If a contractor's RCT deduction rate is set at 35% they will not qualify as a contractor who is eligible to participate in the Home Renovation Incentive (HRI) Scheme. They will only qualify to participate in the HRI Scheme if they regularise any outstanding compliance issues as a matter of urgency.

28 February 2014