Aid for Research and Development (tax credit)

This incentive measure allows companies to claim tax credits on costs incurred directly or indirectly in carrying out an R&D project or projects relevant to the company’s trade. Eligible projects should seek to achieve an advance in a field of science or technology through the resolution of scientific or technological uncertainty.

Eligible R&D Projects

  • The supported R&D Activity must be identified in specific projects that seek to address a scientific or technological uncertainty and which can fall with the definitions of Industrial Research or Experimental Development.
  • The commencement of an R&D projects supported under this incentive may not be prior to the 1st of January 2017. An R&D project begins when work to resolve the scientific or technological uncertainty starts and ends when that uncertainty is resolved or work to resolve it ceases.
  • The project or projects carried out must relate to your company’s current trade activity or to a trade activity that the company intends to start based on the results of the R&D activity.
  • A company claiming the tax credit must own any intellectual property that might arise from the R&D Activity claimed.

Aid intensity

  • Beneficiaries that carry out an eligible R&D activity will receive a tax credit calculated at twenty five percent (25%) of the eligible expenditure.
  • The percentage shall be increased by 10% when the applicant is a medium sized enterprise and by 20% when the applicant is a small enterprise.
  • The total support shall be limited to EUR 15 million for any project cover by the R&D activity.

Qualifying costs

 

  • Qualifying employee costs
  • Contracted R&D expenditure
  • Materials and utilities
  • Software

 

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