Research & Development (R&D) tax credit regime

Qualifying companies

Companies that are within the charge to Irish corporation tax and carrying on R&D activities within the European Economic Area or the UK may receive a credit of 25% for qualifying expenditure. Combined with the standard corporate tax deduction for R&D expenditure (valued at 12.5%), companies undertaking qualifying R&D can claim a total tax benefit of €37.50 for every €100 of expenditure. 

Qualifying R&D activity generally requires that the company engages in systematic activity which seeks to achieve a scientific or technological advancement, and which involves the resolution of scientific or technological uncertainty.

Companies are not required to hold the intellectual property rights resulting from the R&D work.  There is no requirement for the R&D work to be successful.

Qualifying R&D expenditure

Eligible R&D expenditure can come from a multitude of sources. Examples of expenditure incurred by the company in the carrying on of qualifying R&D activities include:

• wages and salaries;
• raw materials;
• plant and machinery used for the R&D activity.

Where a company has received or will receive grant assistance, then the amount received is required to be deducted from the expenditure incurred on the R&D activities.

How to claim

The R&D tax credit claim must be filed within 12 months of the company’s year-end, thus there is an incentive to consider whether any immediate action is required. The company must have appropriate records to support the claim.

Why choose us?

Our specialist team are experienced in assisting companies to prepare and defend claims.

Contact our R&D specialist team to discuss your research, development and innovation needs and how we can help with your claim.

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