There is a 25% tax credit available on qualifying expenditure incurred over and above what the company expended in 2003.
The credit may be used in a number of different ways:
- Offset against the current year corporation tax liability
- Offset against the previous year corporation tax liability
- Carried forward against future years corporation tax liabilities, or
- More importantly refunded to the company
Therefore, the total tax benefit of qualifying research and development expenditure is 37.5% when in addition to the tax credit one takes into account the normal 12.5% corporation tax deduction for the expenditure. The credit can yield significant cash flow and cost benefits to companies where the tax credit claim is optimised.
We have assembled a team of tax and scientific technical experts who have a wide range of experience in the following sectors:
- Food and drink
- Information technology and computer software
- Process engineering
- Mechanical engineering
- Medical and biotechnology
A wide range of activities in the areas of technology, pharmaceutical, medical device/ product engineering and food /ingredient manufacturing often demonstrate obvious “white coat” R&D tax credit suitability. However ancillary activities deemed internally as “normal / standard” activities may very often qualify for inclusion in a claim. In addition to the normal costs of raw materials and direct wages that may be attributed to research and development, other items such as overheads and management costs may also be included in a claim on a just and reasonable basis.
In addition to revenue costs on research and development, there is also a tax credit available for capital expenditure on plant and machinery and buildings used for research and development purposes.
We have a wide and in depth range of practical experience both in advising clients on the availability of the research and development tax credit and also interacting with the Revenue Commissioners where claims are examined.
Our services include:
- Research and development tax credit claims.
- Research and development grant claims.
- Advice and support services during a Revenue Audit.
- Review of claims submitted to the Revenue Commissioners.
- Research and development project reviews.
If you need any further information, please contact a member of the Mazars R&D tax group in confidence to either 01-4496423 or 01-4496453 or email R&DTax@mazars.ie