Ireland is a leading technical hub where companies innovate to produce technological advances in their software to protect sensitive business and consumer data. In Budget 2024, the Irish Government demonstrated their commitment to the National Cyber Security Centre with a €10.4 million investment. This demonstrates the importance of digital technologies, our digital networks, and the potential disruption to them. Businesses incur substantial non-commercial expenditure in developing new and innovative security protection measures; however, they are unaware they qualify for relief via the R&D Tax Credit Scheme from Revenue.
Benefit from a 25% refund on qualifying R&D expenditures with R&D tax credits
The R&D scheme now rewards businesses with a 25% refund on all eligible R&D expenditure, rising to 30% from 2025. Initially awarded as a tax credit against your corporation tax, businesses can now avail of it as a cash refund. This welcome cash flow allows businesses to continue to invest in the development of innovative technologies and remain competitive in their markets.
Under the R&D tax credit legislation, qualifying R&D activities are defined as those that are systematic and investigative, seek to achieve new knowledge, and involve the resolution of technological challenges. These activities can include the improvement, implementation and/or integration of existing products, processes, or services.
R&D Tax Credit claims can include the time engineers and developers spend on these activities (salaries), subcontractors or 3rd party input, a portion of software licences and or any hardware purchased to carry out these activities.