Research and Development tax credit

Ireland’s R&D tax credit system is a major benefit to both multinational companies and SMEs operating in Ireland. The R&D tax credit was first introduced in Finance Act 2004 and offers a company undertaking R&D in Ireland a significant tax break, representing a potential 25% refund of costs incurred.

In essence, it means companies incurring qualifying R&D spend can potentially claim a refund of €25 for every €100 of expenditure on R&D.

Profit making companies will see a direct reduction in their tax liability, whilst loss making companies can claim the credit in three instalments. Either way, it brings a cash benefit.

The R&D tax credit is part of a suite of tax reliefs aimed at increasing Ireland’s attractiveness as a location to house innovative activities.

See our Tax Innovation page