R&D Tax Credits: What They Are and How They Work
A high-level overview of research and development tax relief in Ireland.
R&D tax credits are an Irish tax relief that rewards companies for spending on research and development. This page explains what R&D tax credits are, how research and development tax relief works, who is eligible, and the benefits. It is an informational overview and does not replace professional advice.
What Are R&D Tax Credits?
R&D tax credits are a government incentive that reduces your tax bill or pays you a credit when you spend on qualifying research and development. In Ireland, the relief is administered by the Revenue Commissioners under the Corporation Tax rules. Companies that carry out—or fund—R&D that meets the statutory definition can claim. The aim is to encourage innovation by making it more affordable to invest in scientific and technological advancement.
How Research and Development Tax Relief Works
Research and development tax relief in Ireland works by allowing a credit or enhanced deduction for qualifying R&D expenditure. The rules and rates are set by legislation; Revenue publish current figures and guidance. Understanding how the relief works helps you plan and claim with confidence.
Eligibility for R&D Tax Credits
Eligibility for R&D tax credits depends on your company being subject to Irish Corporation Tax, carrying out or funding R&D, and the R&D meeting Revenue’s definition (seeking an advance in science or technology and resolving scientific or technological uncertainty). Revenue guidance and, if needed, an R&D tax consultant can help you understand eligibility.
Benefits of R&D Tax Relief
The benefits of R&D tax relief include a lower Corporation Tax bill and, in many cases, a credit that can fund further innovation. R&D tax credits can significantly reduce the net cost of research and development. Understanding how the relief works and what qualifies helps you plan and claim with confidence.
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