Ireland’s Research & Development (R&D) tax credit lets you reclaim 25c for every €1 spent on qualifying R&D—on top of standard deductions. Whether you’re developing AI algorithms, novel pharmaceuticals, or energy-efficient manufacturing, this credit can supercharge your budget.
Below is a human-centred walkthrough—complete with tables, real-world tips, Finance Bill 2023 updates, SME enhancements, Emerging AI trends and how Experlu can guide you to success.
1. What Is the R&D Tax Credit?
- Rate: 25 % tax credit on eligible R&D spend
- Refundable: Yes—unused credit refunded over 3 years if you have no corporation tax liability
- Carry-forward: Yes—apply any excess against future profits
The R&D (Research and Development) Tax Credit is a government incentive designed to encourage companies to invest in innovation, technological advancement, and product or process development.
2. Recent Updates (Finance Bill 2023)
| Update | What’s Changed |
| Faster Payments | Revenue now processes refundable R&D credits within 8 weeks of claim approval |
| SME Focus | Turnover threshold for “SME R&D claims” raised to €100 million; simplified documentation |
| Activity Clarity | Revenue refined definitions around software R&D and prototyping to align with EU guidelines |
Tip: If you qualify as an SME (turnover ≤ €100 m), you can use a streamlined claim form and enjoy a faster review.
3. Who Qualifies?
| Criterion | Explanation |
| Advance Science/Tech | Your project resolves uncertainty not solvable by existing methods |
| Experimental Work | You perform tests, prototypes or iterations |
| Documentation | You record hypotheses, trials, results and next steps |
| SME Special Rules | SMEs benefit from lower admin, fewer documentation requirements |
4. Qualifying Costs at a Glance
| Cost Type | Included? |
| Salaries & Wages | Staff directly on R&D (in-house & contracted) |
| Materials | Consumables, prototype parts |
| Subcontractors | Third-party specialists |
| Utilities | Pro-rated energy/space used in R&D |
| Equipment Allowance | Wear-and-tear on R&D machinery |
5. Step-by-Step Application
- Plan & Record
- Document your scientific uncertainties, planned experiments and results.
- Calculate Spend
- Sum eligible salaries, materials, subcontractor fees and utilities.
- Complete Form CT1
- Fill out the R&D section, attach a technical summary.
- Submit & Review
- Revenue aims for 8-week turnaround on refundable claims.
- Receive Your Credit
- Offset against tax or request a refund over 3 years.
6. Real-World Tips
- Start Now: Log as you go—avoid year-end scramble.
- Keep It Concise: A clear narrative + simple cost table often beats 50 pages of notes.
- Leverage AI: Use tools like ChatGPT to draft your technical summaries—then refine manually.
- Peer-Review: A tax adviser can spot overlooked costs.
- Annual Review: R&D projects evolve—update your claims yearly.
7. Emerging Trends: AI-Augmented Claims
- Automated Cost Tracking: AI tools can tag invoices and timesheets to R&D projects automatically.
- Smart Documentation: Generative AI can draft hypothesis statements and methods outlines.
- Predictive Eligibility: Machine-learning models help pre-screen activities likely to qualify.
Note: Always review AI outputs carefully to ensure technical accuracy and compliance.
8. How Ireland Compares Internationally
| Country | R&D Rate | Refundable? | Ease of Claim |
| Ireland | 25 % | Yes (3 yrs) | Single regime, clear rules |
| UK | 13–20 % | Yes (SMEs) | Two regimes (SME & RDEC) |
| USA | ~10 % | No (some states) | Complex federal/state split |
| France | 30 % | Yes (cash lump) | Detailed justification |
9. How Experlu Can Help
| Service | Benefit |
| Eligibility Assessment | Identify ALL qualifying activities and costs |
| Documentation Support | Create concise technical summaries & cost tables |
| Full-Service Claim | End-to-end CT1 completion, filing and Revenue liaison |
| Audit Defense | Compile and present supporting evidence if Revenue requests more |
Get your Free R&D Assessment with Experlu’s specialists- maximise savings, minimise stress.
10. Quick FAQ
| Question | Answer |
| When’s the deadline? | Up to 12 months after your accounting period end. |
| Can loss-making firms claim? | Yes-Revenue will refund unused credits over three years. |
| Do I need records? | Absolutely-project logs, staff records, emails, invoices and contracts. |
| What about capital equipment? | You claim a wear-and-tear allowance, not full cost up front. |
| Is it only for big firms? | No- SMEs (< €100 m turnover) get simpler forms & faster payments. |