How the Research and Development Tax Credit Works
A clear guide to how R&D tax relief works in Ireland.
The Irish research and development tax credit allows companies to claim a credit against Corporation Tax (or in some cases a payable credit) on qualifying R&D expenditure. This page explains how the scheme works: who can claim, what qualifies, and how relief is calculated. It is for information only.
What is the R&D tax credit?
The research and development tax credit in Ireland is a relief that reduces a company’s Corporation Tax or can result in a cash payment. R&D is defined as work that seeks an advance in science or technology and involves the resolution of scientific or technological uncertainty. The relief is administered by the Revenue Commissioners.
How the credit is given
Qualifying R&D expenditure is aggregated and a credit is calculated at the rate set by legislation. The credit can be set against Corporation Tax; unused credit may be carried forward or, in certain cases, paid. Revenue Commissioners guidance and the Tax and Duty Manuals set out the exact mechanics.
Qualifying expenditure
Qualifying expenditure typically includes staff costs, subcontractor costs, and consumables related to R&D. The company must be carrying out the R&D. Revenue publish guidance on what qualifies. For current rates and rules, check Revenue and the legislation.