Wednesday, 10 July 2019
Department of Finance
Knowledge Development Box
146. To ask the Minister for Finance the number of claimants of the Knowledge Development Box in 2016, 2017 and 2018 in tabular form; the projected number of claimants in 2019 and 2020 respectively; the cost in each year to date; the projected cost in 2019 for tax planning purposes; and if he will make a statement on the matter. [30314/19]
I propose to take Questions Nos. 146 and 147 together.
I am advised by Revenue that the most recent data on the annual cost and the number of claimants of the Knowledge Development Box (KDB) for the years 2016 and provisional figures for 2017 are published on page 18 of Revenue’s paper on 2018 Corporation Tax payments and 2017 Corporation Tax returns. This information is available at www.revenue.ie/en/corporate/documents/research/ct-analysis-2019.pdf.
In this regard, the Deputy may be aware that a claimant company has a period of up to 24 months to make a claim for KDB relief. It is anticipated that companies will make use of the 24 month time frame available. Therefore more claims in respect of the year ended 31 December 2017 may be made by September 2019.
No data in respect of 2018 will be available until the Corporation Tax returns for the accounting years ended in 2018 are filed and analysed. Likewise, data on later years are not currently available.
I am further advised that, due to the small number of KDB claims and Revenue’s obligation to protect the confidentiality of taxpayer data, it is not possible to provide further information on claimants.
As the KDB was introduced for accounting periods ending on or after 1 January 2016 it has not been subject to an ex post evaluation yet. The KDB has a sunset clause of 31 December 2020, therefore an ex post evaluation of the relief will occur prior to Budget 2021. This allows my Department time to monitor the relief and assess its continued relevance.