Revenue will expedite payment of the research and development tax credit in a move that could free up thousands of euro in cash for businesses struggling during the Covid-19 crisis.
The State’s tax collector said in selected cases, it will accelerate payment of instalments of the R&D tax credit due to be paid to companies this year. The tax credit cost the exchequer €448 million in 2017 and €670 million in 2016 according to Revenue figures.
Under the excess R&D tax credit regime, companies based in the Republic can claim 25 per cent back for every euro they spend on research and development. Many companies who don’t have a tax liability in a given year can get a cash refund from Revenue which is paid back over a three-year period in three instalments.
But under the regime, Revenue is only required by law to pay the cash refund after September 23rd each year, the date by which a company’s corporation tax return must be filed. That means that in normal circumstances if companies were to file that return this week, Revenue wouldn’t need to pay the cash refund until after September.
Source: Irish Times