2024 Changes to the R&D Tax Credit
Amanda Souza
The modifications detailed below will be effective for accounting periods commencing on or after 1 January 2024.
R&D Corporation Tax Credit (RDTC) Rate Increase:
Similar to the adjustments made to the R&D Tax Credit, the RDTC rate experiences an increase from 25% to 30%.
R&D Corporation Tax Credit Minimum Repayment Limit:
Claimants of the R&D Corporation Tax Credit will retain the option to:
- Offset the credit against tax liabilities.
- Choose to have the credit repaid through refundable instalments.
The refundable instalments will now follow this structure:
- First Instalment: The greater of €50,000 (previously €25,000) or 50% of the credit claimed.
- Second Instalment: Continuing to be based on three-fifths (30%) of any remaining balance of the R&D corporation tax credit.
Pre-Notification Requirement
If a company has refrained from claiming the R&D Corporation Tax Credit in any of the preceding three accounting periods leading up to the intended claim period, a mandatory pre-notification is required. This pre-notification, submitted at least 90 days before filing a claim, should include:
- Company name, address, and tax number.
- Description of R&D activities.
- Number of employees actively engaged in R&D.
- Details of any relevant grant assistance received or anticipated.
Claim Deadline and Notification for Non-Claimants:
The deadline for claiming the R&D Corporation Tax Credit remains within 12 months of the accounting period’s conclusion. For instance, a claimant with a 31 December 2024 accounting period has until 31 December 2025 to claim the RDTC.
Moreover, companies not filing an R&D Corporation Tax Credit claim in the preceding three accounting periods must notify Revenue of their intention to claim on or before 30 September 2025.
Stay informed, adapt your strategies, and capitalise on the enhanced R&D Corporation Tax Credit to drive innovation and growth in your business. Proactive engagement with these changes ensures you maximise the benefits in the evolving landscape of R&D incentives.
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