Ireland seeks feedback on R&D tax credit

Ireland’s Department of Finance today launched a public consultation to assist in a review of Ireland’s research and development (R&D) tax credit.

Responses are sought to eight questions about the credit, as follows:

1. What are the key considerations to be taken into account when deciding whether to base your R&D activity in Ireland
2. In the absence of the R&D tax credit, what proportion of your R&D would take place in Ireland?
3. As R&D is project driven the annual cost to the exchequer can fluctuate quite significantly. What steps could be taken to improve advance forecasting of claims for Exchequer purposes
4.  In your experience, has your decision to conduct R&D in Ireland resulted in you recruiting additional staff, interns or apprentices?
5. R&D credit allows for limited outsourcing of R&D. Are the limits appropriate? What is the impact of these outsourcing provisions on third level institutions and/or smaller firms?
6. What are the factors that are relevant to the relatively low uptake of the current credit by SMEs?
7. Are there ways of improving the current credit system to make it more attractive to SMEs?
8. Having regard to overall Exchequer cost, what measures could be taken to amend the current relief to improve supports for SMEs carrying out R&D?

Feedback is requested by June 7.