Ireland R&D Tax Credit

Ireland R&D Tax Credit

Administers Ireland innovation tax credit, allowing qualifying companies to claim expanded relief for innovation activity.

The Ireland Research and Development Tax Credit is a statutory Corporation Tax credit administered by the Revenue Commissioners under Ireland's tax code. For accounting periods commencing on or after January 1, 2024, the credit rate is 30% of qualifying research and development expenditure, increased from the prior rate of 25% pursuant to Finance (No. 2) Act 2023 and Finance Act 2024. The credit is available to any company within the charge to Irish Corporation Tax that undertakes qualifying R&D activities in Ireland, the EEA, or the United Kingdom, provided the expenditure does not qualify for a tax deduction in another jurisdiction.

Two parallel regimes exist. Under the original regime, the credit offsets Corporation Tax liability directly. Under the newer R&D Corporation Tax Credit regime, the credit is treated as an overpayment of tax and can be offset against other tax liabilities or repaid to the claimant in three annual instalments. Qualifying activities must be systematic, investigative, or experimental; fall within a field of science or technology; constitute basic research, applied research, or experimental development; and involve the resolution of scientific or technological uncertainty. Activities may be conducted in Ireland, EEA member states, or the UK.

Claims are self-assessed — there is no competitive application, no selection panel, and no deadline. Companies file claims via the CT1 annual Corporation Tax return. Revenue administers pre-filing notification requirements for some claims and conducts compliance audits. The credit is a statutory entitlement for any company meeting the qualifying criteria, with the award amount calculated mechanically as 30% of qualifying spend. Irish-resident for-profit companies across all sectors that invest in systematic R&D are the eligible claimant class.