Revenue Issues E-Brief On Subcontractor Certificates

by Jason Gorringe, Tax-News.com, London

27 November 2009

Ireland's Revenue Commission has issued an eBrief on the renewal of C2 (Subcontractors Certificate) cards with an expiry date of 31 December 2009.

The Revenue explained earlier this year that:

"Where the expiry date of a C2 is 31st December 2009, Revenue is now reviewing the entitlement of subcontractors to renew their C2 card for 2010. As part of this review, letters have issued to subcontractors who, according to Revenue records, have outstanding liabilities and/or returns. Details have been provided to the subcontractor with the letter."

With regard to subcontractors with outstanding liabilities and/or returns, the tax authority explained that:

"A new C2 card for 2010 will not issue to subcontractors until their tax affairs have been brought up to date. No additional reminders will issue to subcontractors regarding this matter."

When subcontractors have brought their tax affairs up to date, the Revenue Commission stated:

"Subcontractors who have received a letter should contact their local tax office when their tax affairs are in order. This will ensure the timely issue of C2 cards which will be effective from 1st January 2010."

Principal contractors have additionally been reminded that they must have a valid Relevant Payment Card (RCT 47) before making gross payments to a subcontractor. Where the contract is ongoing at 31 December 2009, the principal contractor can make a bulk application to Revenue for payments cards on Form RCT 46A (PDF, 289 KB).

The eBrief concluded:

"The relevant payment cards for 2010 will not issue to the principal contractor until the valid C2 has been collected by the subcontractor. Relevant Contracts Tax at 35% should be deducted from any payments made to the subcontractor after the 1st January 2010 and before the relevant payment card is received."

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