Irish Revenue published eBrief No. 085/26 on 23 April 2026, updating guidance in Tax and Duty Manual Part 29-02-03 to reflect changes introduced by Finance Act 2025, including an increase in the R&D tax credit rate to 35% and revised qualifying and administrative provisions.
Irish Revenue has published eBrief No. 085/26 on 23 April 2026, updating the Tax and Duty Manual (TDM) Part 29-02-03 to reflect changes to the Research and Development (R&D) Corporation Tax Credit introduced by Finance Act 2025.
The changes are reflected throughout the manual, with new examples included, where appropriate.
Key changes include:
- increase in the rate of the credit from 30% to 35%,
- increase in the first instalment threshold amount from EUR 75,000 to EUR 87,500,
- an administrative simplification measure allowing 100% of an employee’s emoluments to be included as qualifying expenditure where that employee performs at least 95% of their duties in the carrying on of qualifying R&D activities,
- a clarification that expenditure incurred on the construction of a qualifying building includes expenditure incurred on the construction of a laboratory to be used in the carrying on of qualifying R&D activities.
For accounting periods commencing on or after 1 January 2023, claims for the R&D tax credit are required to be made under section 766C and/or section 766D Taxes Consolidation Act (TCA) 1997. Therefore, material in relation to claims for the R&D tax credit under section 766 and section 766A TCA 1997, together with associated examples, have been removed from this TDM.
Please refer to ‘Show older versions’ on the R&D TDM page on the Revenue website for guidelines in relation to claims for the R&D tax credit under section 766 and/or 766A TCA 1997.
Earlier, Ireland’s Department of Finance released the Research and Development Tax Credit and Innovation Compass on 16 February 2026.
