The R&D tax credit is a valuable tax-based incentive designed to encourage investment in research and development by companies in Ireland. Since its introduction the R&D tax credit scheme has evolved to offer increased tax credit benefits to companies across Ireland, most notably the opportunity to avail of valuable cash refunds.
A 25% credit is available in addition to the ordinary corporation tax deduction at the standard rate of 12.5%. Furthermore, for loss making companies the tax credit will be refunded to the company in three installments over a period of 33 months from the end of the period in which the expenditure was incurred. This makes the R&D credit extremely valuable for both profit and loss making companies.
How Crowe can help your organisations benefit from these valuable reliefs
Undertaking a Research and Development project can be very daunting. The added pressure of substantiating your research and development activities for the purpose of claiming tax reliefs is an added burden that many owner-managed businesses often shy away from.
Our Corporate Tax team will work in tandem with you to determine whether you are entitled to claim the R&D tax credit. We will also advise on how to maximise the amount of your claim and assist you with preparing the documentation required to substantiate your claim.
In our experience many companies are not aware of their entitlement to claim the R&D tax credit. The credit is available for research and development activities carried out in a wide variety of industries including:
- Food and drink
- Information technology and computer software, gaming, hardware
- Process engineering
- Mechanical engineering
- Financial services
- Medical device manufacture, bio sciences, pharmaceuticals
Specific areas we can advise on include:
- Assist you with identifying R&D projects
- Prepare R&D claims
- Review of historical R&D claims
- Assist with setting up internal procedures to capture R&D data
- Deal with Revenue queries
- Advice and support during a Revenue audit