Research and Development Tax Credit
Tax Relief for Research & Development 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 offset current and previous years’ CT liabilities, it may apply for a credit payable in instalments.
A company may qualify for the R&D Tax Credit if:
- it is within the charge of CT in Ireland
- it carries out qualifying R&D activities in Ireland or the European Economic Area (EEA)
- the expenditure does not qualify for a tax deduction in another country.
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:
- involve systemic, investigative or experimental activities
- be in the field of science or technology
- involve one or more of these categories of R&D:
- basic research
- applied research
- experimental development
- seek to make scientific or technological advancement
- 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