RESEARCH & DEVELOPMENT TAX CREDITS
MALONE & CO.
An R&D tax credit is a valuable tax-based incentive designed to encourage investment in research and development by companies in Ireland. A 25% credit is available in addition to the ordinary Corporation Tax deduction at the standard rate of 12.5%. Therefore, the total benefit could be worth €37.50 for every €100 spent on a company’s R&D activities.
The credit is generally available for R&D activities carried out in a wide variety of science and technology areas such as software development, engineering, food and beverage production, medical devices, pharmaceuticals, financial services, agriculture and horticulture.
From our experience, many companies are not aware of their entitlements to claim an R&D tax credit for the work they are carrying out. We would encourage all companies to investigate their entitlement to claim a credit.
R & D Tax CreditsAlong with our associates, we can assist and advise clients on the following:
- Review the R&D activities and costs to determine those which qualify for tax relief and maximising R & D tax relief
- Prepare reports on qualifying R&D activities and expenditure for submission to the Revenue Commissioners
- Correspond with the Revenue Commissioners regarding the R&D claim
- The viability and likelihood of the success of an R&D claim
A claim for an R&D tax credit involves identifying and documenting qualifying R&D activities and associated expenditure in a manner that meets the strict requirements of the legislation and Revenue guidance.
The R&D credit is also available in respect of expenditure incurred on the construction (including refurbishment) of a building where R&D activities carried on by a company in that building over a 4 year period represent at least 35 per cent of all activities carried on in that building. The credit allowed is in proportion of the use of the building for R&D purposes over that 4 year period.