U.S.-based ResMed has opened a new technology R&D centre in the Sandyford Suburb of Dublin, Ireland. ResMed is a provider of cloud-connectable medical devices for the treatment of sleep [...]
Tax credit for R&D and Patents
The R&D tax credit offer a 25% tax credit for expenditures for qualifying R&D activities. There is also available a 12.5% corporate tax deduction for R&D expenses, making the effective tax relief 37.5%.
Description of Incentive
Tax deductions for R&D expenses incurred and an additional R&D tax credit of 25% of qualifying spend can be relieved against the corporation tax charge for the period. Excess R&D credits are eligible to be refunded in cash, equating to a total tax relief of 37.5% (corporate tax rate of 12.5% and R&D rate of 25%), allowing companies a maximum refund of €37,500 for every €100,000 spent.
Eligibility for claiming the credit is broad and not restricted to industries. The definition of R&D activities is systematic, investigative, or experimental activities in a field of science or technology including:
- basic research
- applied research
- experimental development
Four categories qualify for the credit:
- Natural sciences
- Engineering and technology
- Medical sciences: basic medicine, clinic or health sciences
- Agricultural sciences
R&D tax credits are applicable to current investments, and the claim should be made on the company’s corporate tax return, within 12 months of the accounting year-end in which the expenditure was incurred.
Swanson Reed offers the following services:
- Advice on tax preparation relevant to claiming the R&D tax credits incentive
- Preparation of documents relating to filing and substantiating a R&D taxation claim
- R&D tax advice and consultations
- R&D tax claim planning and preparation