The Finance Bill published this afternoon makes a number of welcome improvements to the calculations of R&D tax credits which will benefit companies in the knowledge based economy. However more can still be done to ensure Ireland is favourably positioned to attract R&D investment.

Commenting on the measures, Joan O’Connor, Tax Partner, Deloitte said: “The government has recognised that the knowledge economy will be instrumental in driving Ireland’s economy forward and has made a number of improvements to the R&D tax scheme, most notably by permanently setting 2003 as the base year for calculating credits and monetising the credits so as to enable companies to claim cash refunds from the Exchequer. This is a welcome move given the current constraints on liquidity for both the indigenous sector and multinational enterprises. It should facilitate the easier calculation and more widespread use of tax credits and further enhance Ireland’s prospects of attracting inward investment.

“However, it is still hoped that a comprehensive tax regime for intellectual property will emerge and so position Ireland most favourably as a hub for intellectual property investment and business,” O’Connor concluded.

Ends

For Further Information Please Contact
John McGuinness
Murray Consultants
087 6417451
jmcguinness@murrayconsult.ie

Claire Quinn
PR Executive
Deloitte
087 6825766
cquinn@deloitte.ie
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