Qualifying expenditure includes wages, materials, and overheads directly related to systematic, investigative, experimental work in science or technology. The work must seek to achieve scientific or technological advancement and involve resolving scientific or technological uncertainty.

The credit is 25% of qualifying R&D expenditure. For example, if you spend €100,000 on qualifying R&D, your credit is €25,000. This credit can be used to reduce your Corporation Tax liability, and any excess may be payable to SMEs.

Yes — if your R&D tax credit exceeds your Corporation Tax liability, SMEs can claim the excess as a payable credit over three years. This means Revenue will pay you the difference even if you have no CT liability to offset.

Non-SME companies can carry forward excess R&D credits against future Corporation Tax liabilities. The excess cannot be claimed as a payable credit but can be used to reduce CT in future accounting periods.

Qualifying expenditure includes: employee costs (wages, salaries, PRSI) for R&D staff, materials and consumables used in R&D, overheads directly attributable to R&D activities, and certain outsourced R&D. The expenditure must relate to R&D activities carried out in the EEA.

Claims are made through Revenue's ROS system as part of your annual Corporation Tax return (Form CT1). You must submit a detailed technical report describing the R&D activities and a financial report showing qualifying expenditure.

Ireland follows the Frascati Manual definition: R&D is creative and systematic work undertaken to increase the stock of knowledge and devise new applications. It covers basic research, applied research, and experimental development in science and technology.

Yes, R&D activities carried out by third parties on your behalf can qualify, but the amount is capped. For SMEs, outsourced R&D to unrelated parties is fully qualifying. For larger companies, the cap is lower and related party outsourced R&D may be restricted.

Companies making their first R&D tax credit claim must pre-notify Revenue within 90 days of the end of the accounting period for which they intend to claim. This is a simple online notification through ROS.

R&D tax credits can be claimed for the current accounting period and can be carried forward indefinitely. However, you must file your claim within the normal filing deadlines for your Corporation Tax return.

You must maintain detailed records including: project plans and timelines, technical reports and lab notebooks, employee timesheets, expenditure receipts and invoices, and payroll records for R&D staff. Records should be kept for at least 6 years.

No, R&D tax credits can only be used to reduce Corporation Tax liabilities. They cannot be used against PAYE, PRSI, or VAT liabilities. However, the payable credit for SMEs is paid directly by Revenue to the company.