Ireland Enhances R&D Tax Credit

The Irish government has published the Research & Development Tax Credit and Innovation Compass, outlining recent changes and the future direction of the Irish R&D tax regime. 

The paper emphasises the government's aim to stay competitive in global R&D investment and highlights its vital importance to the Irish economy.  

Improvements and key changes to the scheme include: 

·       Increase in the R&D Tax Credit Rate from 30% to 35% 

·       Increase in the first-year payment threshold from €75,000 to €87,500 

·       Administrative simplification, whereby if ≥95% of an employee's time is spent on R&D, then 100% of their salary qualifies, and no detailed apportionment is required

The updates aim to provide more support for innovation with easier compliance and increased accessibility for SMEs involved in R&D. 

The paper also highlights the government's intention to further develop specific areas of the scheme, including a potential review of the current subcontracting rules, administrative simplification, additional tax incentives beyond the R&D credit, and even the definition of qualifying R&D expenditure.  

With Irish R&D tax relief becoming increasingly generous, Minerva Innovation Group would be happy to discuss how the incentive could support your business and guide you every step of the way in maximising the value of your claims. 

If you are an Irish company interested in claiming R&D tax credit, please get in touch with our team for a free consultation to learn more. 

We also offer a generous referral scheme, so if you are a UK business working with Irish companies undertaking R&D, we would welcome the opportunity to connect.  

Book your free consultation with us today!