Earlier this year, the Irish Revenue Commissioners
("Revenue") published updated guidelines
on Ireland's research and development
("R&D") tax credit regime (the
"Guidelines"). The Guidelines
follow recent legislative amendments which expand Ireland's tax
incentives for R&D activities and further enhance Ireland's
attractiveness as a location for developing intellectual
property.
Under Irish tax law, a company can claim a tax credit of 25% of
qualifying expenditure, in addition to the standard corporation tax
deduction, in respect of certain expenditure incurred in carrying
out R&D activities across a broad range of sectors. The
tax credit is available to off-set against a company's Irish
corporation tax liability. Excess credits may be carried
forward for offset against future profits or may be repaid to the
taxpayer in certain circumstances.
