On Tuesday, October 12^th, The Minister of Finance Paschal Donohoe, and the Minister of Public Expenditure Michael McGrath unveiled the 2022 budget. The budget including many talking points focusing on COVID relief as well as any financial assistance to the everyday person. In this article, we will focus on the changes that will affect the research and development (R&D) tax program.

For starters, as this was announced on October 8^th, the corporate tax rate will increase from 12.5% to 15%. This was deemed as a surprise but will only affect large multinationals as the 15% only applies to businesses with revenues over €750 million.

When it comes to the actual budget, below are some points that will affect an R&D claim:

• Employment Wage Subsidy Scheme to be extended. The expectation is this to wind down next year.
• Tax relief at 32% for investment in digital gaming, up to €25million per project. Companies creating content for adverts or gambling will not be able to qualify for the new relief.

We are however still surprised that the R&D Tax Rate of 25% has not changed. The initial increase to 30% was discussed pre-COVID for micro and small businesses. This is still in the process and has not been approved. We hope this will change as many startups and small businesses need the cash flow to increase research and innovation within Ireland. Braithwaite Ireland will continue to monitor any changes to the R&D program.

For assistance on your company’s next R&D claim, please contact the experts at Braithwaite Ireland today CONTACT US.

Image Source:
BBC – Irish budget: Irish finance minister outlines €4.7bn package https://www.bbc.com/news/world-europe-58877189

Content Sources:
Irish Central – Irish Government agrees to 2.5% tax hike for large companies, https://www.irishcentral.com/news/politics/ireland-corporate-tax-rate

Irish Times – Budget 2022 main points: What’s in it for you? https://www.irishtimes.com/news/ireland/irish-news/budget-2022-main-points-what-s-in-it-for-you-1.4698158

Government of Ireland – Budget 2022, Tax Policy Changes