Ireland’s R&D tax credits regime

As a country that prides itself as being a great place to do business, Ireland’s Research and Development R&D tax credits is an extremely valuable tax-based incentive introduced by the Irish government in 2004 to encourage much needed investment in R&D by companies operating here.

Since its inception, the R&D tax credit regime has evolved immeasurably to offer qualifying companies large tax reliefs and potential cash refunds.

If you are investing in R&D, or planning to invest, a 25% tax credit can be claimed on all qualifying R&D expenditure, in addition to the normal corporation tax deduction at the standard 12.5% rate. Also, for loss making companies or companies where a corporation tax liability does not arise in an accounting period, the tax credit may be refunded to the company in three equal instalments. These factors make applying for this credit a must for your company if you have invested in a qualifying R&D project(s).      

At RSM our team of experts are available to discuss the R&D tax credit regime, practicalities and how it may apply to your business.

We can assist you in your R&D projects by providing the following services:

  • Prepare R&D claims
  • Help set up internal procedures to capture R&D expenditure
  • Advice and support through a Revenue Audit
  • Liaising with Revenue and addressing any queries that may arise

R&D Tax Credits; a missed opportunity & COVID-19 concession updates

29 April 2021
It is interesting to note that the number of companies making R&D tax credit claims over the past 5 years has been steady; between 1,500 to 1,600 each year.