R&D guidance updated

Revenue has updated its guidance on the Research and Development (R&D) corporation tax credit to reflect Finance Act 2025 changes including new examples where relevant. The key changes include the increase in the rate of the credit from 30 percent to 35 percent, and the increase in the first instalment threshold amount from €75,000 to €87,500.

Other changes include:

• Details of the administrative simplification measure allowing 100 percent of an employee’s emoluments to be included as qualifying expenditure where that employee performs at least 95 percent of their duties in the carrying on of qualifying R&D activities, and
• 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 the guidance.  Guidelines in relation to claims for the R&D tax credit under these sections are included on the R&D TDM page on the Revenue website  under the section for ‘Show older versions’.