The Irish Government allocated an estimated €869.2m to research and development activities in 2020. This welcome news reflects the government’s commitment to make Ireland a “global innovation leader”.
Commenting on this news, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar, TD reiterated “R&D is a really important driver of competitiveness, productivity and economic growth. We invest now and reap the rewards in terms of jobs and new technology in the future”
The published report titled “The Research and Development Budget 2019-2020” shows that spend in Ireland on R&D was €802.2m in 2019 – an increase of 4.8pc compared to the previous year.
In 2020, the report estimates that this spend grew by a further 8.4pc, with allocated funding rising to €869.2m. Most of the increase in R&D expenditure comes from the business sector but we are slowly seeing an increase in higher education and government agencies.
It is now easier than ever for Irish companies to access R&D funding and avail of R&D Tax Credit to improve their products and services and compete internationally.
Braithwaite Ireland are R&D Tax Credit specialists and are very aware of the extent and variety of R&D being carried out in different industries.
It is unfortunate that many companies across Ireland are unaware of the R&D Tax Credit or do not grasp the eligibility criteria, however our consultants have the expertise to uncover this opportunity for your business
The R&D Tax Credit is a 25% return on your companies’ R&D expenditure in either a cash or credit refund. Qualifying expenditures include salaries/wages related to R&D projects, subcontractor costs, materials, P&M and overhead costs. Projects conducted in a fiscal year-end i.e. January 2019 to December 2020 will have 12 months to submit a claim to Irish Revenue.
It is important that SMEs realise and capitalise on this credit to compete. Investing in R&D is a good strategy and unlocking this potential allows companies to plow this credit back into their innovations.