764 Deduction for revenue expenditure on scientific research.

[ITA67 s244(2) and (2A); CTA76 s21(1) and Sch1 par9]

(1) Where a person carrying on a trade either—

(a) incurs non-capital expenditure on scientific research relating to the trade, or

(b) pays any sum to—

(i) a body carrying on scientific research and approved for the purposes of this section by the Minister for Finance, or

(ii) an Irish university,

in order that such body or university may undertake scientific research,

then, the expenditure so incurred or the sum so paid shall be deducted as an expense in computing the profits or gains of the trade.

(2) Where a person carrying on a trade—

(a) incurs non-capital expenditure on scientific research or pays any sum to a body or university referred to in subsection (1)(b) in order that the body or university may undertake scientific research, and

(b) the expenditure so incurred or the sum so paid is not deductible as an expense under subsection (1) because the scientific research is not related to any trade being carried on by the person,

then, the expenditure so incurred or the sum so paid shall be deducted as an expense in computing the profits or gains of the person’s trade.