RESEARCH & DEVELOPMENT
Over the last number of years Revenue have continued to enhance the R&D tax credit regime. Companies who carry out qualifying R&D activities can now get an effective tax deduction of 37.5% for qualifying expenditure. From 2015 the regime has been amended so that there is no requirement to deduct base year expenditure, this may give rise to an increased qualifying expenditure and therefore increased credit for most companies.
Companies can receive a cash refund from Revenue in respect of qualifying expenditure where the company does not have sufficient corporate taxable profits to offset the credit against. The refund is capped at the higher of the total PAYE and PRSI paid in that year or the total Corporation Tax payable in the previous ten years.
It is important that an R&D claim is made within 12 months of the company’s year end as it will not be allowed after this date.
We have experience in preparing R&D claims and can assist your business to set up the required documentary evidence and prepare the R&D claim at the end of the year.
For assistance with your R&D claim please contact a member of our team.
The introduction of the Knowledge Development Box (KDB) in Finance Act 2015 sees a 6.25% rate applying to profits derived from patented or similarly protected inventions and copyrighted software. Such Intellectual Property Assets must be the result of qualifying R&D activities carried out in Ireland. The amount of profits that can avail of the KDB favourable rate of tax is determined by the proportion of the R&D relating to those profits which is carried out in Ireland.
The KDB contained in Irish legislation was the first in the world to meet the OECD’s ‘modified nexus’ standard.
The tax team in UHY FDW can assist is determining your eligibility for the KDB and preparing your tax returns after the end of the accounting period.