close
Share with your friends

Ireland: R&D tax credit, expedited cashback (COVID-19)

Ireland: R&D tax credit, expedited cashback (COVID-19)

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.

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal