Research & Development - Tax credit regime
31 January 2017
The most valuable features in business today are people and ideas - in particular, people with ideas.
The Irish research and development (R&D) tax regime provides a 25% credit for qualifying expenditure on qualifying activities. This means that companies can now obtain an effective tax deduction of up to 37.5% with the possibility of the value of the R&D tax credit being refunded where there is not a sufficient level of taxable profits within the company/group.
Consider how much money your business spends when trying to develop or improve its products or processes. Now imagine you could reduce that by 25%.
Features of the Irish R&D tax regime
Companies are entitled to a credit of 25% of the incremental R&D expenditure incurred for periods commencing on or after 1 January 2015.
The credit can be used to:
- Reduce the company’s corporation tax liability of the period
- Reduce the corporation tax liability of the previous year, or
- If unused, the credit can be refunded by the tax authorities subject to certain restrictions.
Download our R&D leaflet to find out more.