Research & Development Tax Credits

R&D can be costly, not only in itself, but also in the fact that a return on investment can take years to achieve. To address this, Ireland has some of the most effective tax reliefs available for this type of expenditure in the form of R&D tax credits. 

R&D tax credits are available at 25% of qualifying expenditure, or 30% in the case of micro or small enterprises from January 2020.  The credit is in addition to a Corporation Tax deduction at the 12.5% tax rate. R&D tax credits are offset against Corporation Tax liabilities. However, where the tax credits exceed these liabilities remaining credits can result in a cash payment.  

These credits are aimed at companies that are actively involved in research and development. This includes the innovation, improvement or development of a process, product or service. The R&D work is not restricted to any one industry and goes beyond the typical ‘men in white coats’ scenarios.

For further details about the qualifying criteria to claim and the mechanics of processing and applying the claim please read our R&D Tax Credit publication, which can be found to the right hand side.

It is worth noting that claims for R&D tax credit must be made within 12 months of the end of the relevant accounting period. If this is not done the entitlement is lost, so time is of the essence. If you would like to discuss whether we can assist you in making a claim for R&D tax credits please contact a member of our technology team at TechTeam@MooreIreland.ie.