Ireland Revenue on 1 April 2020 issued guidance for companies claiming the research and development (R&D) tax credit and availing themselves of the cashback mechanism. The guidance was issued in response to the exceptional circumstances resulting from the coronavirus (COVID-19) pandemic.
The guidance provides that when a company is claiming the R&D payable credit mechanism, Revenue will expedite the payment of any instalment of excess R&D tax credit that is due to be paid in 2020—that is, the second and third cash instalments from 2017 and 2018, but also potentially the first instalment of 2019, subject to “appropriate checks” by Revenue.
This treatment is intended to bring forward the payment from the normal payment date that typically would be after the corporation tax return filing date (i.e., 23rd September for companies with a December year-end).
Revenue noted that requests for expedited payment of any 2020 instalments of excess R&D tax credits need to be made electronically and that a company’s Form CT1 / Corporation Tax return must be submitted at the time of the request.
Read an April 2020 report prepared by the KPMG member firm in Ireland
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