On Tuesday, October 12th, 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 8th, 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:
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.
BBC – Irish budget: Irish finance minister outlines €4.7bn package https://www.bbc.com/news/world-europe-58877189
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