It is clear that in Ireland the research and development tax credit is not limited to research in the laboratory. A company may consider the day to day activity like developing a new product, devising or making improvements to a production process, or trying out a new material to reduce costs and these may apply for getting the R&D tax credit but it happens quite often. As it does not have a laboratory or research department, a company does not consider that it can claim any R&D tax credits. However all companies should review their activities in the light of the definitions contained in the legislation.
The list of activities for which a research and development tax credit would be available is extensive. With a potential saving of up to 25% of qualifying expenditures, prudent taxpayers should evaluate whether their activities meet the criteria.
