With the recent publication of the Finance Bill 2019 on October 17th, 2019, Braithwaite has uncovered an update that effects Micro and Small Companies.

As originally reported by many publications as well as Braithwaite, it was stated that companies with 250 employees would qualify for the R&D increase from 25% to 30%. However, that is not the case as the R&D Tax Credit increase from 25% to 30% is only applied to Micro and Small Companies. Below is how both companies are defined:

  • Micro Company: 10 employees or fewer with an annual turnover and/or balance sheet total not exceeding €2 million.
  • Small Company: 50 employees or fewer with an annual turnover and/or balance sheet total not exceeding €10 million.

Companies that do not fit these guidelines will remain at the 25% R&D Tax Credit.

Braithwaite will continue to monitor for more updates on the Irish R&D Tax Credit Programme.