New COVID-19 R&D Measures for Irish Businesses
Social distancing and lockdowns due to COVID-19 have had a major effect on Irish businesses. Before the pandemic hit, Ireland’s GDP was rising significantly and the business enterprise sector was investing heavily in R&D.
Measures have recently been introduced to help mitigate the effects of COVID-19 on Irish businesses. A request can be made to bring forward the payment date for instalments of excess R&D tax credits that are due to be paid in 2020. This request must be made with the submission of the company’s corporation tax return for the 2019 financial year.
Ireland currently caps its tax credits relative to a company’s PAYE contributions and these are paid over three years. However, the CEO of Myriad Associates has suggested Ireland bring their model in line with countries like the UK, who pay 100% of the tax credit within weeks. This could affect the ability of Irish businesses to focus on economic recovery. Fewer investors in Ireland are investing in new IT innovations in order to reserve funds for their existing portfolios, unlike countries with stronger pro-investor approaches.
Companies conducting innovative activity in Ireland can access a 25% tax credit for R&D. Find out more by contacting Swanson Reed on +353 61 639 556.