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 Requirements

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

Other Considerations

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

Incentive Page - Ireland

  • This field is for validation purposes and should be left unchanged.