Tax Incentives / All

Fostering innovation is widely regarded as fundamental to delivering a sustainable economy. Government strategy has helped encourage innovation, particularly through the continued improvement of incentives such as the R&D tax credit, writes Ken Hardy of KPMG.

This guide provides country-specific information that summarises the tax treatment of R&D expenditure.

Our work for software and electronics companies has found eligible expenditure in a number of areas.

There are many activities carried out by companies in the biotechnology, pharmaceuticals and medical devices sectors that could be considered R&D.

You could be entitled to a cash refund from Revenue worth 25% of your qualifying R&D spend.

The tax credit operates on a group basis and is available to companies, within the charge to Irish tax, that undertake R&D activities in the European Economic Area (EEA).

Whether you’re already claiming the R&D tax credit or just considering your eligibility, it’s essential to remember that R&D doesn’t just happen in the laboratory.

As you may be aware, the receipt of a refund in relation to your R&D Tax Credit claim does not mean that the claim has been accepted by Revenue.

Read about R&D tax incentives in the emerging Asia Pacific region.