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Budget 2020 – R&D Tax Credit Changes

 

Minister for Finance Paschal Donohoe today announced a number of significant changes to the R&D Tax Credit in his Budget 2020 speech:  

 

1. An increase in the R&D Tax Credit rate from 25% to 30% for small and micro companies.

A small company is defined as a company with fewer than 50 employees and with either an annual turnover and/or an annual balance sheet total not exceeding €10 million.

A micro company is defined as a company with fewer than 10 employees and with either an annual turnover and/or an annual balance sheet total not exceeding €2 million.

 

2. The limit on the amount of the R&D Tax Credit available as payable credit to small and micro companies is to be enhanced.

 

3. The R&D Tax Credit due in respect of a company’s pre-trading expenditure will be available as on offset against the company’s VAT and Payroll tax liabilities. At present, the R&D Tax Credit due in respect of a company’s pre-trading expenditure can only be offset against the company’s corporation tax liability.

 

4. Payments to universities to carry out R&D in a relevant Member State will be allowable up to the greater of 1) 15% of the company’s own in-house R&D expenditure or 2) €100,000.

At present this restriction applied is the greater of 1) 5% of the company’s own in-house R&D expenditure or 2) €100,000.

About Us

SciMet R&D is the leading, Irish owned, independent R&D Tax Credit consultancy. The company was founded on a simple principle – to consistently deliver exceptional service and value to R&D performing companies in claiming their full and proper R&D Tax Credit entitlement.

We achieve this by delivering the perfect blend of science, technology, tax and accounting expertise. The R&D Tax Credit is unique in that it combines a science test with an accounting test. SciMet R&D is unique in the Irish market in the value we bring to our clients in meeting both tests.

At SciMet R&D we are truly passionate about science and technology. It motivates us to be able to play a part in the exciting research and development being carried out by our clients.  Our tailor-made R&D Tax Credit services deliver efficiencies, robustness and cost effectiveness that facilitate our clients in doing what they do best – innovate.

Our Address: Unit 3, Cova, Trafalgar Road, Greystones, Co. Wicklow