Revenue Incentives

R&D Tax Credit

The research and development Tax Credit is a valuable tax-based incentive that is designed to encourage investment in R&D by companies in Ireland. A 25% tax credit for qualifying Research and Development expenditure exists for companies engaged in in-house qualifying research and development undertaken within the European Economic Area. This credit may be set against a company's Corporation Tax Liability. The first €100,000 of all qualifying R&D expenditure will benefit from the full 25% R&D tax credit from 2012. This is of particular benefit to SMEs. For larger R&D expenditure, tax credit will continue to apply only to the amount by which expenditure in 2012 exceeds that incurred in the based year 2003

For further information on R&D tax credit click here.

Seed Capital Scheme

If you start up and work full-time in your own company, you can claim back the income tax you paid in the previous six years to invest equity into a company (subscribed as shares) engaged in a qualifying trade. The amount of relief is restricted to the amount of the investment. Since November 2011, the scheme is open to a much wider range of sectors and the ceiling on recoverable tax can now be up to €100,99 in each of the six look back years.

For further information on the Seed Scheme chick here 

Three Year Corporate Tax Exemption

The scheme provides relief from corporation tax on the trading income and certain gains of new start-up companies in the first 3 years of trading. There will be full relief on income and gains relating to the trade where total corporation tax liability in any of the first 3 accountinf periods does not exceed €40,000 and €60,000. You can earn €320,000 tax free per year for the first 3 years. The relief available is now based on the amount of employets; PRSI paid by an employer in respect of their employees.

 

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