Construction Industry: VAT and C2-Cards

ConstructionConstruction Withholding Tax in Germany:

In Germany, the construction withholding tax of 15 % might be deducted from payments to subcontractors. Companies can apply for an exemption from this deduction and the refund of the tax.

Irish Taxation offers comprehensive advice on the German tax system.

Our services include:

  • Registration for tax and filing of returns
  • Application for exemption from construction withholding tax

Relevant Contract Tax (Construction Withholding Tax) in Ireland

In Ireland, subcontractor’s payments must be filed on Revenue’s online system before it can be given to the subcontractor. This filing determines whether the Relevant Contract Tax needs to be paid and by how much.

3 different tax rates may apply:

  • 35% from the subcontractors wages for a company that is not registered for tax in Ireland
  • 20% from the subcontractor’s wages for a company with a valid Irish tax registration number
  • 0% for a company that is exempt from RCT and that has filled all their tax obligations

The subcontractor can apply for a refund of the paid RCT. Therefore it would be necessary to apply for an Irish tax number. The RCT will be refunded if the company has filed an application and has performed all tax-obligations in Ireland.

Penalties may occur if the payments are filed late or not at all. This applies to all 0%-20% of RCT.


  • Consultation as to whether services for RCT apply
  • Registration for RCT and application for the 0% and 20%
  • Filing of contracts and payments in the Revenue Online System
  • Application for RCT refunds
  • Filing of all tax returns

Presentation at construction summit on relevant taxes for construction companies in Ireland and Germany: