R&D Tax Services

In Tax

We have helped clients address the technical and financial aspects of making R&D tax credit claims since 2004, while navigating both the evolving industry landscape and changes to Revenue’s R&D guidelines.

Related topics Tax Tax planning

How does the R&D regime work?

The research and development (R&D) regime provides for a tax credit or cash refund worth 25% of your R&D expenditure in respect of R&D activities incurred by a company within the charge to Irish tax operating in the EEA. For small and micro companies, as per Budget 2020, this is to increase to 30% of your R&D expenditure.

The credit or cash is in addition to any existing deduction or capital allowances for R&D expenditure, in other words, for every €100 spent on qualifying R&D activity (revenue or capital expenditure), a company could be entitled to €25 cash back which is in addition to the 12.5% corporate tax deduction. Therefore, up to 37.5% effective tax relief could be obtained for R&D expenditure, if it falls within the scope of this regime, equating to €37.50 for every €100 spent.

This coupled with the availability of grant support can help companies significantly reduce their cost of doing R&D in Ireland.

What EY can do for you

Our dedicated and multi-disciplinary R&D team has a proven track record of offering a uniquely integrated service to clients across a range of industry sectors by combining the skills of engineers, scientists, industry specialists and qualified tax advisors. We have a proven methodology for building robust R&D tax claims and helping clients maximise those claims. We also have an excellent track record on R&D Revenue audits, which is the envy of our peers.

Our tailored approach can include:

R&D Tax services tailored approach

Our team has over 15 years’ experience helping Irish multinational companies and SMEs claim R&D tax benefits. We have extensive experience in successfully agreeing claims with Irish Revenue on audit and we engage with Irish Revenue and the Department of Finance on R&D tax credit matters including: audit approach, application of Revenue guidance and potential legislative improvements in this area. Our experience includes securing the first Irish Revenue pre-approval for a client in the software sector, which encompassed a technical review by an industry expert engaged by Irish Revenue.

How EY can help

  • Conducting R&D feasibility studies and workshops

    We can perform R&D feasibility studies to identify potentially qualifying R&D projects.

    We can also perform more detailed R&D workshops to educate your technical and financial teams on qualifying criteria and documentation requirements as well as sharing the benefits of our experience with Irish Revenue.

  • Drafting tailored technical reports

    To take away the heavy lifting around the preparation of technical reports, we provide a tailored template to capture your technical activities.

    We then conduct interviews with your technical personnel to identify eligible R&D activities and we draft up the reports to document those activities.

  • Reviewing technical reports

    We can review technical reports prepared by your technical team and provide instructive and helpful comments to ensure they are in line with tax legislation and Revenue guidelines.

  • Performing a review of the R&D calculation

    We can review your R&D expenditure in line with agreed methodology and R&D tax legislation.

    We can then assist you in the submission of the R&D tax credit claim to Irish Revenue.

  • Compiling R&D tax credit reports

    We gather the information obtained during the technical and financial phases into a single comprehensive report to support your R&D tax credit claim filed with Revenue.

  • Assisting with Revenue audits

    Due to our extensive experience in successfully assisting companies through Revenue audits, we can help in both the preparation for the audit, including conducting mock audit sessions, as well as attending the actual audit itself.

Worldwide R&D Incentives Reference Guide

 

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For a free 1:1 consultation to identify the potential incentives available to you, and how to maximise same for your innovation activities.