Research and Development tax credit
Ireland’s Research and Development (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.