The Department of Finance has opened a public consultation (PDF, 440KB) that will form part of its 2019 review of the R&D tax credit. This review was expected and is part of rolling reviews of significant tax reliefs that the Department of Finance undertakes as a matter of course. The consultation period will last 6 weeks, from 29 April to 7 June 2019.
We would strongly recommend that companies review the public consultation document and consider making a submission based on their experience of claiming the R&D tax credit; please contact us if you would like to discuss this with us. The credit is a highly effective policy tool in encouraging the creation and retention of high-value jobs and investment in Ireland. In order to ensure it continues to be fit for purpose it is important that all stakeholders highlight the positive aspects of the regime, any issues they may have with it, and improvements they would like to see.
With this in mind, we specifically draw attention to question 4 of the public consultation document relating to additionality: “In your experience, has your decision to conduct R&D in Ireland resulted in you recruiting additional staff, interns or apprentices?” We believe it is important to highlight if the credit has been important in retaining current levels of headcount, rather than focusing only on new job creation.
If you would like to discuss your submission to the Department of Finance, or if you have any questions about the review, please do not hesitate to contact us.