Finance Act 2015 was signed into Irish law in late December 2015. The signing of the Act legislates for Ireland’s newest tax incentive for innovative companies; the Knowledge Development Box (“the KDB”). The KDB offers an effective tax rate of 6.25% on qualifying profits generated in periods commencing on or after 1 January 2016.
As the first OECD compliant box-type regime, the relief available is linked to the percentage of qualifying R&D expenditure incurred in Ireland.
Given the links between the KDB and the R&D tax credit legislation, companies that already claim the credit should examine the potential benefits of also accessing the KDB regime...