R&D Tax Services
We have helped clients address the technical and financial aspects of making R&D tax credit claims since 2004, while navigating both the evolving industry landscape and changes to Revenue’s R&D guidelines.
How does the R&D regime work?
The research and development (R&D) regime provides for a tax credit or cash refund worth 25% of your R&D expenditure in respect of R&D activities incurred by a company within the charge to Irish tax operating in the EEA. For small and micro companies, as per Budget 2020, this is to increase to 30% of your R&D expenditure.
The credit or cash is in addition to any existing deduction or capital allowances for R&D expenditure, in other words, for every €100 spent on qualifying R&D activity (revenue or capital expenditure), a company could be entitled to €25 cash back which is in addition to the 12.5% corporate tax deduction. Therefore, up to 37.5% effective tax relief could be obtained for R&D expenditure, if it falls within the scope of this regime, equating to €37.50 for every €100 spent.
This coupled with the availability of grant support can help companies significantly reduce their cost of doing R&D in Ireland.
What EY can do for you
Our dedicated and multi-disciplinary R&D team has a proven track record of offering a uniquely integrated service to clients across a range of industry sectors by combining the skills of engineers, scientists, industry specialists and qualified tax advisors. We have a proven methodology for building robust R&D tax claims and helping clients maximise those claims. We also have an excellent track record on R&D Revenue audits, which is the envy of our peers.
Our tailored approach can include:
Our team has over 15 years’ experience helping Irish multinational companies and SMEs claim R&D tax benefits. We have extensive experience in successfully agreeing claims with Irish Revenue on audit and we engage with Irish Revenue and the Department of Finance on R&D tax credit matters including: audit approach, application of Revenue guidance and potential legislative improvements in this area. Our experience includes securing the first Irish Revenue pre-approval for a client in the software sector, which encompassed a technical review by an industry expert engaged by Irish Revenue.
How EY can help
Our thinking
- Digital Games Tax Credit: This article first appeared in Irish Tax Review, Issue 1 2022, © Copyright of Irish Tax Institute
- July 2020 Revenue R&D Guidelines: This article first appeared in Irish Tax Review, Vol. 33 No. 3 (2020) © Irish Tax Institute
- March 2019 Revenue R&D Guidelines: This article first appeared in Irish Tax Review, Vol. 32 No. 2 (2019) © Irish Tax Institute
- Covid-19: Early payments of 2020 instalments of excess R&D tax credits
The team
Contact us
For a free 1:1 consultation to identify the potential incentives available to you, and how to maximise same for your innovation activities.
