Budget 2014 - Corporation Tax

R&D Tax Credit

The R&D Tax Credit regime provides for a 25% tax credit for incremental expenditure on certain research and development (R&D) activities over such expenditure in a base year (2003). Finance Act 2012 provided that the first €100,000 of qualifying R&D expenditure would benefit from the tax credit without reference to the 2003 threshold. The amount of expenditure so allowed on a volume basis was increased to €200,000 in Finance Act 2013 and is now being increased again to €300,000.

The limit on the amount of qualifying research and development expenditure that can be outsourced to another company is also being increased from 10% to 15% .