Rose Conway-Walsh (Mayo, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

77. To ask the Minister for Finance when the next departmental tax expenditure evaluation will be published on the research and development tax credit; and if he will make a statement on the matter. [9677/22]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Research and Development (R&D) tax credit allows companies to claim a 25% tax credit in respect of expenditure incurred on qualifying R&D activities.

It is intended for a review of the R&D tax credit to take place during 2022, alongside an evaluation of the Knowledge Development Box (KDB). My officials plan to facilitate public consultation and stakeholder engagement during the review process.

The review will consider the potential impact of the agreement reached at the OECD/G20 Inclusive Framework on BEPS on the R&D tax credit, particularly the Pillar 2 global anti-base erosion (GloBE) rules. It will also have regard to any elements of the ongoing process of international tax reform which may be of relevance to the credit.

The review will inform any policy considerations to be undertaken in advance of Budget 2023, and it is therefore intended that the review will be published on or before Budget Day, this October.

The Deputy may also be interested in Revenue’s published information in respect of the research and development tax credit, which is available at: www.revenue.ie/en/corporate/documents/statistics/tax-expenditures/r-and-d-tax-credit-statistics.pdf.