If a principal contractor deducted RCT from your payments, that money is not lost. Revenue credits it to your tax record, uses it to pay your own tax bills and repays any balance after the end of the tax year, once your return is filed and all your taxes are paid. Non-resident subcontractors follow a separate claim route.
This guide explains how the credit works, the order Revenue uses it in, when you can get a refund and what to do if it does not arrive. Rules are as published by Revenue and checked on 21 October 2026.
How the deducted RCT becomes a credit
When a principal deducts RCT at 20% or 35%, it pays that amount to Revenue on your behalf. According to Revenue's Tax and Duty Manual for subcontractors, the tax is credited automatically to your tax record and treated as a payment on account.
You do not need to apply for the credit. It appears in your ROS record once the principal's payment notification is processed, and you can see all RCT transactions and offsets there. If you are new to RCT and want to understand the rates and the payment process first, start with our guide to what RCT is and how the rates work.
The order Revenue uses your credit
Revenue does not repay RCT straight away. It uses the credit against your own liabilities first, in this order:
- Income Tax or Corporation Tax for the year (or accounting period) in which the RCT was deducted.
- Preliminary tax for the following period, if you submit a preliminary tax declaration.
- Any other tax you owe, such as VAT or PAYE as an employer.
- Repayment of whatever is left.
Revenue's credit and offset rules say offsets happen automatically, no later than seven days after the liability falls due, and are confirmed by a statement of account in your ROS inbox. Offsets only happen once the relevant return is filed: the Form 11 or CT1 for Income Tax or Corporation Tax, the VAT3 for VAT and the monthly return for PAYE.
When you can claim back RCT
For a resident subcontractor, the rules are strict. Revenue can only repay RCT after the end of the tax year, and only when:
- your Form 11 (sole trader) or CT1 (company) for that year has been filed
- a notice of assessment has issued
- all your Income Tax or Corporation Tax and other tax liabilities have been paid
No repayment is made during the year in which the tax was deducted. In practice, this means the earliest point to get money back is after you file the annual return for that year.
Revenue processes RCT repayments manually rather than through an automatic system, so allow time after filing. If you are in liquidation, receivership or examinership, any balance is repaid to the liquidator, receiver or examiner.
A worked example
A sole trader subcontractor works for several principals during 2026. Each principal deducts RCT at 20%, and the total deducted over the year is 8,000 euro.
| Step | Amount |
|---|---|
| RCT credited to the tax record during 2026 | 8,000 euro |
| Income Tax, USC and PRSI due for 2026 on the Form 11 | 5,000 euro |
| Credit used against the 2026 liability | 5,000 euro |
| Credit left after the 2026 liability | 3,000 euro |
| Used against preliminary tax for 2027, if a declaration is submitted | 2,000 euro |
| Balance repayable once all taxes are paid | 1,000 euro |
The subcontractor files the 2026 Form 11 in 2027. Once the assessment issues and nothing else is owed, Revenue can repay the 1,000 euro balance.
The example shows why late returns are expensive. Until the Form 11 or CT1 is filed, the credit sits unused, and late filing can also push your RCT rate up from 20% to 35%.
How non-resident subcontractors claim
Non-resident subcontractors who are registered for RCT can apply for a refund through Revenue's International Claims Section. Revenue's page for non-resident subcontractors says a refund can be applied for during the year.
The claim needs:
- Form IC1 for an individual or Form IC3 for a company
- certification of the form by the tax authority of your country of residence, for the year the income was earned
- an RCT questionnaire for each contract
- a copy of the deduction authorisation
The certification covers a period of three years, but Revenue can ask for it again at any time.
If your refund does not arrive
Most delays come down to three things:
- A return is missing. Check that every Form 11 or CT1, VAT3 and employer return due is filed. One missing return blocks the repayment.
- Another tax is owed. Revenue will use the credit against it first. Your ROS statement of account shows where the credit went.
- The credit is in the wrong place. If a principal used the wrong tax reference number, the credit may not reach your record. Ask the principal to check the details on the payment notification.
If everything is filed and paid and the refund still has not arrived, contact Revenue's RCT team through MyEnquiries in ROS. If your periods are covered by debt warehousing or an instalment arrangement, a credit offset to those periods must also be requested through MyEnquiries.
Keeping RCT credits from building up
The best way to avoid waiting for refunds is to keep your RCT rate low and your returns on time:
- stay registered for RCT and tax, so principals do not deduct at 35%
- file your returns on time, so Revenue can use credits as they arise and your rate stays at 0% or 20%
- submit a preliminary tax declaration, so spare credit pays next year's preliminary tax instead of waiting for a refund
- check your ROS record regularly against your own list of payments and deductions
If you are starting out as a subcontractor, registering for RCT and tax with Revenue before your first job keeps you off the 35% rate. Principals who prefer to hand over their monthly or quarterly filings can have their RCT returns prepared for them.
FAQ
Can I claim back RCT in Ireland?
Yes. RCT deducted from your payments is credited to your tax record. Revenue uses it against your own taxes first and repays any balance after the end of the tax year, once your return is filed and all taxes are paid.
How long does it take to get RCT back?
There is no fixed time. The earliest point is after the year ends and your Form 11 or CT1 is filed and assessed. Revenue processes RCT repayments manually, so allow time after that.
Can RCT be repaid during the year?
Not as a resident subcontractor. Revenue does not repay RCT during the year in which it was deducted. Non-resident subcontractors registered for RCT can apply during the year through the International Claims Section.
Why was my RCT credit used for VAT?
Revenue offsets RCT credits against any tax you owe, including VAT and employer PAYE, before repaying anything. The statement of account in your ROS inbox shows each offset.
Do I need to apply for the RCT credit?
No. The credit is added to your tax record automatically when the principal reports the payment. You only need to make sure your returns are filed so it can be used or repaid.
What if the principal used the wrong tax number?
The credit may not reach your record. Ask the principal to check the name and tax reference number on the payment notification, and contact Revenue through MyEnquiries if it is not corrected.
