Research and Development (R&D) Corporation Tax Credit

About this scheme

The Research and Development (R&D) Corporation Tax Credit (and its predecessor, the R&D Tax Credit) gives relief on qualifying R&D expenditure to companies within the charge of Irish Corporation Tax. Qualifying R&D activities must be systematic, investigative or experimental, in the field of science or technology, and aimed at resolving scientific or technological uncertainty through basic research, applied research, or experimental development — carried out in Ireland, the EEA, or the UK, and not already relieved by a tax deduction elsewhere. A claim for the R&D Corporation Tax Credit is mandatory for accounting periods commencing on or after 1 January 2023, and is repaid over three annual instalments (treated as an overpayment for offset, or repaid, at the company's election) rather than reducing CT liabilities directly. First-time claimants (or those who haven't claimed in the past three years) for periods from 1 January 2024 must pre-notify Revenue at least 90 days before claiming. Claims are made through ROS on the Corporation Tax return, within 12 months of the accounting period's end.

Who can apply

• The company must be within the charge of Corporation Tax in Ireland
• The company must carry out qualifying R&D activities in Ireland, the European Economic Area (EEA), or the United Kingdom (UK)
• The expenditure must not qualify for a tax deduction in another country
• Qualifying R&D activities must: involve systematic, investigative or experimental activities; be in the field of science or technology; fall into one or more of basic research, applied research, or experimental development; seek scientific or technological advancement; and involve resolving scientific or technological uncertainty
• The credit is calculated at 30% of qualifying expenditure for accounting periods commencing on or after 1 January 2024, up from 25% for earlier periods
• For accounting periods beginning on or after 1 January 2024, first-time claimants (or companies that have not claimed in the previous three years) must file a pre-filing notification form via MyEnquiries in ROS (Corporation Tax category, 'R&D Pre-filing Notification' subcategory) at least 90 days before making the claim
• A claim for the R&D Corporation Tax Credit is mandatory (rather than elective) for accounting periods commencing on or after 1 January 2023; it is repaid in three annual instalments and is not offset directly against CT liabilities — the company must elect to have each instalment treated as an overpayment (for offset) or repaid
• Transitional rules let a company elect between the R&D Tax Credit and the R&D Corporation Tax Credit for accounting periods ending between 31 December 2022 and 30 December 2023, subject to conditions
• A company may elect to accelerate repayable credits due on an R&D Tax Credit claim made for accounting periods commencing before 1 January 2022, via a specified return for an accounting period commencing on or after 1 January 2022

How to apply

1. 1Confirm the company is within the charge of Corporation Tax in Ireland and has incurred expenditure on qualifying R&D activities carried out in Ireland, the EEA, or the UK.
2. 2If this is a first-time claim (or none has been made in the previous three years) for an accounting period beginning on or after 1 January 2024, file a pre-filing notification form through MyEnquiries in ROS at least 90 days before making the claim.
3. 3Claim the R&D Tax Credit or R&D Corporation Tax Credit through the Revenue Online Service (ROS) on the company's Corporation Tax return, within 12 months of the end of the accounting period in which the expenditure was incurred, having checked the claim meets all requirements before applying.