R&d tax credit

The R&D Tax Credit is a valuable tax-based incentive designed to encourage investment in R&D by companies in Ireland. A 25% tax credit for qualifying R&D expenditure exists for companies engaged in qualifying R&D. This credit may be set against a company’s Corporation Tax liability. The first €100,000 of all qualifying R&D expenditure will benefit from the full 25% R&D tax credit from 2012. It is particularly of benefit to SMEs. For larger R&D expenditure, the tax credit will continue to apply only to the amount by which expenditure in 2012 exceeds that incurred in the base year 2003. The total tax benefit of qualifying R&D expenditure is 37.5% when in addition to the tax credit you take into account the normal 12.5% corporation tax deduction for the expenditure.

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