Overview of WCT

Works contract tax (WCT) is a tax imposed on a contract for work, such as assembling, construction, building, altering, manufacturing, processing, fabricating, installation, improvement, repair, or commissioning of any movable or immovable property.

WCT is based on the contracts for labor, work, or service, and not for the sale of goods; although goods are used to fulfill the contract. For example, when a contractor constructs a building, the buyer pays for the cost of the building, which includes the building material, labor, and other services. No contract exists for the supply of the building material. The WCT tax applies only to the building and not for the materials used for construction. A WCT certificate is the Certificate of Tax (R75I119) which you submit to the dealer or contractor.

Note: A transaction is considered a works contract only if the finished product is supplied to a customer and is not sold in the market to any other person.