Tech firms are being advised to take advantage of the R&D tax credit scheme before the end of the year.
The scheme is designed to encourage investment in R&D by companies in Ireland.
The credit operates by giving you up to 25% of your R&D expenditure (both revenue and capital) in a tax credit or in cash (subject to certain conditions being met).
The 25 percent credit is available in addition to the 12.5 percent corporation tax deduction at the standard rate.
The relief is generally available for R&D activities carried out in a wide variety of science and technology areas.
It doesn’t just apply to pharma or technology companies, but also includes manufacturing, food and drink, energy and financial services as well as agriculture and horticulture.
Bruce Stanley, Tax Partner at HLB Ireland, said the latest data shows a substantial increase in R&D investments, with total R&D expenditure reaching €4.688 billion or 4,688 companies in 2022.
He said this reflected "robust engagement from tech companies."
"The R&D tax credit is a useful incentive for businesses to invest in innovative projects," said Bruce.
In 2022, 588 tech companies claimed €135m under the scheme.
As the December 31 deadline approaches, HLB Ireland urged tech companies to take advantage of the benefits.
"This is a prime time to leverage the R&D tax credit," Bruce added.
"Especially as the tech sector continues to show dynamic growth and innovation, contributing significantly to Ireland's economy."
Photo: Bruce Stanley
