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Research and Development Tax Credits

R&D Tax Credits

The R&D tax credit is a tax-based incentive that encourages investment in R&D by companies in Ireland.

Accounting for R&D tax credits.

Dublin, 18th September 2017 - KPMG has launched its annual Innovation Monitor report, which tracks the views, insights and key issues impacting innovation and R&D among companies in Ireland. The research, conducted by Red C, found that 88% of companies currently innovate in Ireland and/or abroad, an increase of 8 per cent year on year. It also found that while the majority of companies (62 per cent) consider Ireland to be “innovation friendly”, this sentiment is down by 8 per cent year on year.

The findings of the research indicate that the main barriers impacting the ability of a company to increase the level of R&D and innovation are access to funding (68 per cent) and access to skill (63 per cent).

The Innovation Monitor also delved into attitudes towards R&D incentives and the impact of potential changes. The research found that limiting the amount of cash refunds a company can claim, or reducing the rate of the incentive for non-taxpaying firms that avail of the refundable mechanism, would negatively impact the attractiveness of the R&D tax credit for seven in 10 companies. It also found that just over half (52 per cent) of companies are unaware of the Knowledge Development Box (KDB).

Read our report here.

Book launch: The Professional’s Guide to the R&D Tax Credit, KDB and Related Reliefs. May 2017

The Irish Tax Institute has launched its latest publication on innovation taxation, The Professional’s Guide to the R&D Tax Credit, KDB and Related Reliefs, authored by Ken Hardy, KPMG Partner and R&D Incentives Practice Leader.

The book contains outlines of:

  • the R&D tax credit regime (identifying qualifying R&D activities and eligible expenditure; documentation requirements; common mistakes; and Revenue audits);
  • specified intangible asset relief and allowance for expenditure incurred on scientific research;
  • the knowledge development box (identifying qualifying assets; calculating the relief; and the interaction with the R&D tax credit).

Copies of the book are available to purchase here on the Irish Tax Institute’s website.


KPMG’s R&D Incentives Practice was established in 2004, when the R&D tax credit was first introduced. We are Ireland’s largest, longest-established and most experienced specialist R&D tax credit practice. Our dedicated multidisciplinary team, comprising tax, finance, science and engineering professionals, has the expertise required to help ensure our clients claim their proper entitlement and submit robust claims to Revenue.

Our SME and large company teams have filed R&D tax credit claims for businesses of every size and scale and in all industry sectors. We engage regularly with all relevant stakeholders, including taxpayers and Government, and we have significant experience of Revenue’s approach to auditing R&D tax credit claims in Ireland.

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Do you have an R&D-related query?

Contact us. If you would like to request an R&D tax credits brochure, require information on how we can assist your company, or would like us to call you directly to discuss your particular circumstances, please e-Mail us via info@kpmg.ie.

We will endeavour to respond to your initial query within two working days.

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