Financial technology is one of the sectors cited in the IFS2020 paper as a key area in ensuring the continued development and operational efficiencies in the financial services sector*. Ireland has a favourable Research & Development (R&D) tax credit which allows a 25% Tax Credit for companies carrying out R&D activities. Our sector-specific expertise allows us to identify eligible activities at the underlying technology level, and identify the technological advancements in the development of financial products or services.
General IT and Software-based R&D activities that may be eligible for a claim:
Is the company using opensource software (and therefore not eligible)?
The company can still be eligible if they extend or further develop it to overcome limitations/deficiencies. 80% of claims nowadays involve some level of opensource and this still is eligible.
Is the company using existing software languages (and therefore not eligible)?
Almost all companies use existing software languages and they could still be eligible. It is not what language they use but rather what creative uses they find with/for it. 99% of claims nowadays involve some existing software languages.
Is the company using existing tools and or libraries (and therefore not eligible)?
If the company has further developed or extended these tools and or libraries, they could be eligible.
Do internal processes qualify?
Many large companies do internal software development for internal processes. This could be eligible but is usually overlooked.
Expenditures can include wages, third-party contractor cost (contractor performing R&D in EEA), materials, machinery, equipment, and overheads.
*IFS2020: A Strategy for Ireland’s International Financial Services sector 2015-2020 (Published March 2015)