Research and Development Tax Credit

Research and Development (R&D) Tax Credit

If a company spends money on research and development activities, these activities may qualify for the R&D Tax Credit.

The credit is calculated at 25% of qualifying expenditure and is used to reduce a company’s Corporation Tax (CT).

Where a company has losses or has offset current and previous years’ CT liabilities, it may apply for a credit repayable in installments.

What are qualifying R&D activities?

To qualify for the R&D Tax Credit, a company must carry out research and development activities that meet the following conditions. The research and development activity must:

1. involve systemic, investigative or experimental activities
2. be in the field of science or technology
3. involve one or more of these categories of R&D:
   • basic research
   • applied research
   • experimental development
4. seek to make scientific or technological advancement
5. involve the resolution of scientific or technological uncertainty.

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie