What is the R&D Tax Credit Programme?
- An opportunity to return 25% of your Research and Development expenditure in a tax credit or as a cash refund. 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.
What type of R&D activities are eligible under the programme?
- There is a misconception that Research and Development can only take place when you have a dedicated team and/or lab facility. The idea of “men/women in white lab coats”. In reality, many of the companies that are taking advantage of programme have qualifying R&D expenditure because a portion of their operations is dedicated to innovation. The expenditure used to enhance, improve and/or advance a product or service could be claimable – even if the project was not successful.
Who can take advantage of the programme?
- The credit is available to Irish-based companies for R&D activities carried out in a wide variety of science and technology areas such as information technology development, engineering, medical devices, pharmaceuticals, agriculture and food processing.
What type of expenditure is claimable?
- Expenditures can include wages, third party contractor cost (contractor performing R&D in European Economic Area (EEA)), materials, machinery, equipment, and overheads. The credit is claimed on qualifying expenditure in respect to the amount spent on R&D activities in the fiscal accounting year.
Does the opportunity expire?
- Yes, all R&D claims must be submitted within 12 months from the end of a completed accounting period.