R&D Tax Credit Ireland
The R&D Tax Credit Programme was introduced in 2004 to encourage Irish-based companies to perform R&D and to promote investment in innovation.
The R&D tax credit serves as a valuable incentive encouraging investment in research and development among companies in Ireland. This credit allows you to receive up to 25% of your R&D expenditure (both revenue and capital) as a tax credit or in cash, provided certain conditions are met. Additionally, this credit complements the 12.5% corporation tax deduction at the standard rate. Eligible R&D activities span diverse fields including software development, engineering, food and beverage production, medical devices, pharmaceuticals, oil and gas, aerospace, agriculture and agri-food.
There’s a widespread misconception about Research and Development (R&D), often seen as limited to specialised teams or high-tech labs. However, many companies benefiting from R&D tax credits have eligible expenses rooted in innovation within their operations. Expenses aimed at enhancing products or services, even if projects don’t yield expected outcomes, may qualify. Any company in any industry, including Irish ones, may be eligible for R&D Tax Credits. The key is engaging in development activities seeking advancements in science or technology, such as creating new products, processes, or services, or modifying existing ones.
Qualifying expenditures for the R&D tax credit encompass a range of eligible costs, such as employee wages, third-party contractor expenses (particularly those contractors engaged in R&D within the European Economic Area), material costs, machinery and equipment investments, as well as overhead expenses. This valuable tax credit can be claimed based on the eligible expenditure incurred during the fiscal accounting year in connection with your research and development endeavours.
Preparing an R&D tax credit claim entails identifying and documenting eligible R&D activities and associated expenditures, and adhering to legislative and Revenue Guidance requirements. Braithwaite Ireland’s leading R&D Tax Credit practice has been pioneering this field since the inception of the R&D tax credit in 2004. Our team possesses the necessary tax, financial, and scientific expertise to assist companies of all sizes and sectors in preparing their claims. Utilising proven methodologies and processes, we ensure your claim is comprehensive, accurate, and audit-ready. The stages of preparing an R&D tax credit claim include feasibility study, detailed claim preparation, submission to Revenue, and audit preparation/support.
The window of opportunity for R&D tax credit claims typically closes 12 months after the conclusion of your fiscal year. For instance, if your fiscal year concludes on December 31, you should aim to submit your claim by December 31, 2020, for activities related to your 2019 fiscal year. To maximise your benefits, Braithwaite advises against delaying your claim submission until the deadline approaches. Instead, consider initiating the process concurrently with your CT1 filing, rather than treating it as a post-deadline amendment.
Braithwaite provides Expert R&D Tax Credit advice. We Combined Technical & Financial Expertise to Identify & Maximise your Innovation & Research & Development Tax Credit Opportunities Across Ireland
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