Pearse Doherty (Donegal, Sinn Fein)
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422.To ask the Minister for Finance the first- and full-year cost in each of the years 2025, 2026, 2027, 2028 and 2029 of making research and development payable credits, under the R&D tax credit regime, payable in one instalment for small and micro companies and SMEs. [33306/24]

Jack Chambers (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to accelerating the second and third payable credit associated with the Research and Development Tax Credit (R&D) for small and micro-companies.

The Deputy may be aware of changes included in the Finance (No.2) Act 2023, which made the first €50,000, previously €25,000, of a claim on R&D expenditure payable in full. This was done to provide a cash-flow benefit for smaller R&D projects and encourage more companies to engage with the regime.

I am informed by Revenue that the estimated cost of making the full amount of the R&D credit payable in one instalment for small and micro-companies is in the region of €43 million. It should be noted that this cost is a cash flow cost and not an additional full year cost as it does not entail any change to the overall amount of the credit. This estimate is based on R&D tax credit claims included on Corporation Tax returns for 2022, the latest year for which fully analysed data is available. It assumes no behavioural change by companies claiming this credit.

The Deputy may also be aware that Corporation tax returns are due to be filed nine months after the end of the accounting period. Returns for accounting years ending in 2023 may therefore be filed up to late September this year, therefore information on tax expenditures in 2023 and years after 2023 are not yet available.

Furthermore, Revenue have advised that they are unable to provide estimates for later years due to the unknown nature of the future tax base and future economic behaviour.