Tax credits are available for research and development expenditure. The relief was introduced to incentivise large multinationals to relocate their R&D departments here but it applies to all enterprises carrying on R&D activities. The expenditure must be incurred in the area of technology and science and involve research and development activities. It must seek to achieve technological or scientific advancement or solutions to technological or scientific uncertainties.
The tax relief is calculated by allowing a tax credit of 25% of the qualifying expenditure against the corporation tax liability of the company. The relief is in addition to the normal deduction for expenditure incurred against taxable income. The tax credit is potentially refundable – eventually!
The tax credit is used as follows:
To claim the credit the company must carry out qualifying R&D activities within the State, must engage in R&D activities in the period and keep a record of all expenditure incurred. The expenditure must be incurred in the State or an EEA county where it does not qualify for relief in that country.
Note the following:
Please contact Imelda Prendergast – Director: OSK Corporate Ltd on 01 439 4206 for more details. OSK tax advisors Dublin provide tax planning services that maximise the benefit to businesses and individuals while enabling total compliance with all relevant tax laws.
*certain conditions and limits apply.
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