R&D Tax Credit FAQs

Research and Development Tax Credits are a Irish government incentive designed to encourage companies to invest in innovation and technical development. The tax credits can allow a company to reduce their tax bill or claim cash credits as a proportion of their R&D expenditure over the qualifying period.

R&D is broader than many companies realise, and even routine-looking development work can qualify as R&D. A good example is an engineering fabrication company that partnered with randd to identify qualifying R&D within its design, manufacturing, and feasibility processes, resulting in a successful R&D tax credit claim above the industry average.

If your business is attempting to resolve scientific or technological uncertainties with some level of risk, you may be carrying out qualifying R&D, regardless of your industry.

If you are problem-solving and looking to overcome technological challenges – whether by creating new products, processes or services, or improving existing ones – your work could qualify as R&D. Importantly, the project doesn’t need to be successful to be eligible.

R&D also applies in more traditional sectors than you might expect. Manufacturing R&D can still qualify, especially where companies are developing or adapting processes, materials, or techniques. Our work with an engineering fabrication company, which identified qualifying R&D within its technical processes and feasibility work, demonstrates how Revenue’s R&D criteria can apply well beyond the obvious ‘high-tech’ industries.

The amount you can claim depends on your qualifying R&D expenditure.

For every €100 spent on eligible R&D, you can claim back €30, for accounting periods beginning 1st January 2026, as a tax credit.

In some cases, if your Corporation Tax liability is low, the credit may be refunded in cash over a three-year period.

Yes — Subcontracted R&D expenditure is eligible up to the greater of €100,000 or 15% of your in-house R&D spend for the relevant accounting period.

To qualify, the subcontracted work must relate directly to your R&D activities and meet the standard eligibility criteria. It’s important to ensure the costs are clearly linked to qualifying R&D projects and properly documented as part of your claim.

You can make a claim up to 12 months after the end of your accounting period.

For example, if your year-end is December 2025, you must submit your claim by December 2026. 

First-time claimants should note that Revenue requires advance notification (pre-filing) of an R&D tax credit claim, which must be submitted within the accounting period in which the R&D expenditure is incurred.

Yes. If your Corporation Tax bill is low or nil, you can receive the credit as a cash refund, paid out in instalments over a three-year period (subject to certain limits and conditions).

Any company subject to Corporation Tax can qualify, regardless of size or sector, provided it is carrying out eligible R&D activities.

Claims are not limited to science labs or tech firms – companies in sectors such as manufacturing, food & drink, engineering, software, and creative industries may all qualify.

Yes. You can claim R&D tax credit relief for staff who are directly involved in qualifying R&D activities.

This includes a proportion of their:

• Salaries and wage
• Employer PRSI contributions
• Employer pension contributions 

You can also claim for staff who directly support the R&D activity (for example, technicians or specialist support roles that are integral to the project). 

The company can claim for consumable items that are directly used up in the carrying out of qualifying R&D activities.

• materials
• utilities
• cleaning products

However, R&D tax relief cannot be claimed for:

• rent or business rates
• the production and distribution of goods and services
• capital expenditure
• the cost of land
• the cost of patents and trademarks

You can read more about qualifying consumable costs here.

Yes, but the way you claim may change. If your R&D project is funded by a notified state aid grant, you cannot claim tax credits on the same expenditure. However, partially funded projects may still qualify for credit on the unfunded portion of costs.

R&D Tax Credit claims are submitted through the company’s Corporation Tax Return (Form CT1) and must be filed via Revenue Online Service (ROS).

The claim should be supported by appropriate technical and financial documentation demonstrating that the activities and costs meet Revenue’s R&D criteria.

If you’d like help preparing or submitting your claim, contact us and our specialists will assist you.