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ROI – R&D Tax Credits
R&D Tax Credits are a government backed incentive scheme. PGR Advisory are a team of Technical Specialists, specialising in maximising claims, whilst ensuring compliance with the rules.
What are R&D Tax Credits
R&D Tax Credits are a valuable incentive introduced by the Irish government to stimulate innovation and increase investment in Research and Development (R&D) activities. For companies operating in Ireland, these credits can significantly reduce your corporation tax liability, making it more financially viable to pursue ambitious R&D projects.
For accounting periods beginning on, or after 1 January 2024, the R&D tax credit rate has increased to 30% (from 25%) of qualifying expenditure, making it an even more attractive option for businesses. However, successfully claiming your entitlement requires expertise and attention to detail. A comprehensive R&D technical report, along with a detailed breakdown of the costs being claimed, is essential to ensure your claim is valid and fully maximized.
Who is Eligible for R&D Tax Credits?
R&D Tax Credits are available to any company within charge to corporation tax in Ireland, regardless of industry, that is engaged in development activities aimed at achieving advancements in science or technology. Whether your business is creating new products, processes, or services, or modifying existing ones, you may be eligible to claim these valuable credits.
Eligibility hinges on the nature of the activities your company undertakes. Qualifying activities must be:
- be systematic, investigative or experimental activities;
- be in a field of science or technology
- involve one or more of the following categories of R&D—
- basic research,
- applied research, or
- experimental development.
In addition, they must
- seek to achieve scientific or technological advancement; and
- involve the resolution of scientific or technological uncertainty.
If your company is pushing the boundaries of what is currently possible in your field, you likely qualify for R&D Tax Credits.
What’s the Process to Claim R&D Tax Credits?
The process of claiming R&D Tax Credits is managed by Revenue, and businesses can submit claims up to 12 months after the end of their accounting period. While not legally required, producing a detailed R&D tax claim report is highly recommended. This report should justify the technical advancements and uncertainties involved in your projects and provide a comprehensive account of the eligible expenditure on a project-by-project basis.
To ensure you’re maximizing your claim and not leaving any money on the table, it’s advisable to consult with an R&D tax specialist. At PGR Advisory, our expertise in this area can significantly enhance the value of your claim.
