Revenue eBrief No. 17/17: R&D tax credit claims in respect of projects supported by Enterprise Ireland R&D grants
The definitions of R&D (Research and Development) used for the purposes of the R&D tax credit and both the IDA’s and Enterprise Ireland’s R&D grants are all based on the OECD’s Frascati manual.
Therefore, with a view to minimising the need to engage experts to verify the science test in R&D tax credit claims, it has been decided that Revenue would not, as a rule, seek to challenge a claim for the R&D tax credit under the science test, where:
- an IDA/Enterprise Ireland R&D grant has been approved in respect of the project;
- the R&D tax credit claimed for an accounting period (of not less than 12 months) is €50,000 or less;
- the project is undertaken in a prescribed field of science or technology, as defined in regulations S.I. No. 434 of 2004, and
- the company is a micro or small sized enterprise.
Further details can be found in Tax & Duty Manual Part 29-02-07
Source: Revenue Commissioners, www.revenue.ie. Copyright acknowledged