R&D Tax Credits Ireland: Frequently Asked Questions from CFOs

How long does it take for Irish Revenue to pay the R&D tax credit?

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In Ireland, R&D tax credit repayments are typically received within 1 to 3 months after the company files its corporation tax return.

The exact timing depends on:

• Whether Irish Revenue opens a review of the claim
• The complexity of the R&D activities being claimed
• How quickly supporting documentation is provided

In straightforward cases, repayment is often issued once Revenue completes its standard processing cycle. If the claim is selected for detailed examination, the timeline may extend beyond 3 months and can take significantly longer to process dependent upon the queries raised in an audit.

In summary: most companies should expect payment within 1-3 months, with potential delays where Revenue undertakes additional scrutiny.

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How is Irish R&D tax credit paid?

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Ireland’s R&D tax credit is delivered as either corporation tax relief, cash payment or a combination of both.

Which of these routes is at the discretion of the claimant, however its important to understand the credit or relief is available over a 3 year payment window delivered in specific tranches based on the following formula below:

Tranche 1: The greater of 50% of the total credit amount or €75,000 (for periods starting after 1/1/24) or €87,500 (for periods starting after 1/1/26)

Tranche 2: 3/5 of the remaining amount from Step 1

Tranche 3: The remainder of the credit.

In summary: the credit is payable typically over a 3 year period with the ability for these payments to be offset against tax liabilities if preferred by the claimant.

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What evidence does Irish Revenue require for an R&D tax credit claim?

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Irish Revenue requires clear, contemporaneous evidence that demonstrates qualifying R&D activity under Irish tax legislation.

Typical supporting documentation includes:

• A description of the scientific or technological uncertainty being addressed
• Clear scientific literature detailing the baseline for the R&D and how the project is seeking to advance beyond that baseline
• Evidence of a systematic approach to resolving technical challenges
• Project documentation such as design notes, test results, sprint logs, or prototypes
• Records of staff involved in qualifying R&D activities
• Time allocation or timesheet evidence supporting R&D labour costs
• Financial records linking expenditure to eligible R&D projects

Revenue does not require overly formal “academic-style” reporting, but it does expect credible, consistent, and traceable documentation that substantiates both the activity and the associated costs.

In summary: you must demonstrate both what technical uncertainty existed and how your team worked to resolve it.

Can SMEs claim the Irish R&D tax credit?

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Yes, SMEs can claim R&D tax credit in Ireland. The scheme is not limited to multinationals.

The scheme is available to:

• Irish SMEs
• Indigenous growth companies
• Start-ups
• Large domestic organisations
• Multinational corporations

Eligibility is based entirely on whether the company is carrying out qualifying R&D activities, not on size, turnover, or ownership structure.

Many SMEs in sectors such as software development, engineering, medical devices, food innovation, and manufacturing successfully claim the credit each year.

In summary: the scheme is activity-based, not size-based. SMEs are fully eligible.

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About the Author

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Peter Clark is the Co-Founder and R&D Technical Director of RCK Partners. An experienced R&D professional, Peter completed an engineering doctorate whilst working within a FTSE 100 central R&D department and subsequently worked in development engineering, refining precious metals, before undertaking management consulting work to implement innovation software. Having worked within one of Europe's largest innovation funding providers, Peter has worked extensively on engineering, construction, manufacturing, and agricultural R&D claims. With a core background in R&D and Chemical Engineering, Peter can better understand the challenges encountered by his clients, applying technology driven solutions into corporation tax services on behalf of clients.

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About RCK Partners

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RCK Partners is a leading firm of tax advisers, based in Ireland and the UK, specialising in R&D Tax Credits. Each claim RCK submits to Revenue is reviewed by our independent, in-house compliance and review team. This team is comprised of tax enquiry specialists, accountants and a lawyer. RCK’s consultants are specialists, not generalists. We hire directly from relevant industries so our consultants have a vocational understanding of the topics in which they prepare claims for and can understand the technical nuances of each project. At RCK, we carefully pair consultants with clients, considering their backgrounds and expertise.

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