Regime Rate
30%
Under the R&D Tax Credit
Standard Top Rate
40%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Tax Credit
Ireland
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under R&D Tax Credit
N/A
Standard Rate
40%
Annual Saving
—
Eligibility Requirements
Who qualifies?
- Companies carrying out qualifying R&D activity in Ireland
How the Regime Works
Full details
30% volume-based credit on R&D expenditure, refundable. Payable over 3 years if credit exceeds tax liability.
Regime vs Standard Rates in Ireland
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 40% | 30% | -10.0pp |
Frequently Asked Questions
What is the R&D Tax Credit in Ireland?
The Section 766 R&D Credit is a special tax regime in Ireland that provides 30% flat rate to qualifying individuals or entities. 30% volume-based credit on R&D expenditure, refundable. Payable over 3 years if credit exceeds tax liability. Legal basis: Section 766 TCA 1997.
Who is eligible for the R&D Tax Credit?
Eligibility for the R&D Tax Credit is limited to: Companies carrying out qualifying R&D activity in Ireland. Applicants typically must not have been Ireland tax residents during a specified prior period. Always verify current conditions at the source: Section 766 TCA 1997.
How much tax do you pay under the R&D Tax Credit?
The R&D Tax Credit provides special tax treatment. Consult the official guidelines (Section 766 TCA 1997) for exact calculation rules.
How long does the R&D Tax Credit last?
The R&D Tax Credit is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the R&D Tax Credit?
Application procedures for the R&D Tax Credit are set out in Section 766 TCA 1997. You typically need to file a formal application with Ireland's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.