Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Chairman. On Deputy Doherty's question about how we can offer assistance to small and micro enterprises, the Finance Bill introduces measures to support companies undertaking smaller research and development projects and to encourage new claimants to engage with the research and development tax credit regime for the first time. The first €25,000 of a claim that represents qualifying research and development will now be payable in the first year rather than spread over a three-year period. Based on an analysis of these 1,616 claims in 2020, 346 of the claims were for a research and development credit of €25,000 or less, which equates to a qualifying research and development expenditure of €100,000 or less. As the Deputy knows, this relates to small claims as opposed to small companies. We are trying to bring this in expecting the claims that will be made in the research and development tax credit that are smaller in value are more likely to come from small companies associated with it. This Finance Bill allows the first €25,000 to be payable in the first year.