Innovation / Research & Development ("R&D") forms a key part of Ireland's growth strategy. In support of this strategy there are a number of tax regimes which have been implemented by the Government and which are hugely valuable to companies in this space.
Between the Research and Development (“R&D”) tax credit regime and the Knowledge Development Box (“KDB”) regime there is the potential to make significant savings with respect to:
1. The cost of carrying on R&D, and
2. The corporation tax payable on trading profits.
R&D Tax Credit Regime: Provides a 25% credit for qualifying expenditure on qualifying activities. This means an effective tax deduction of up to 37.5%, with the R&D tax credit being cash refundable where there is not a sufficient level of taxable profits within the company/group.
KDB Regime: Offers an effective tax rate of 6.25% on qualifying profits generated in periods commencing on or after 1 January 2016. This means that you could pay 50% less corporation tax on such profits. As the first OECD compliant box-type regime, the relief available is linked to the percentage of qualifying R&D expenditure incurred in Ireland.
Given the links between the KDB and the R&D regimes, companies claiming or considering claiming the R&D tax credit should also examine their potential to access the KDB regime.
Our easy to use assessment tools allow you to get an understanding as to whether your company might be eligible to avail of significant tax reliefs which are available to companies in Ireland.
Our assessment tools also allow you to calculate the potential savings that could be made if these tax reliefs were availed of.
If you would like to request more information on R&D tax credits or information on how we can assist your company, please contact us here.
More Information: For more in-depth information in respect of the R&D and KDB regimes, or our specialised services in these areas, please see useful links below
If you would like to request more information on R&D tax credits or information on how we can assist your company, please contact us here