How Ireland’s Tax System Rewards Innovators

By Kane Bergin
tax system

How Ireland’s Tax System is encouraging the investments in the future

Ireland has long been regarded as a friendly environment for larger businesses, but what about the smaller start-up just starting its journey? The Government offers various incentives in different ways that could apply to you. Below we’ll look at the incentives for those investing in the future, both in our tax system and in general.

General Business Incentives

There are a couple of grants innovative businesses can apply for. If you’re developing solutions to technical or business challenges, then you can apply for a €5,000 innovation voucher from Enterprise Ireland. It’s designed to encourage small businesses to collaborate with research institutions.

The Horizon 2020 program provides a similar incentive. It’s an EU initiative similar to the innovation voucher, except the collaboration aspect applies to the whole of the EU. Several Irish small businesses have taken advantage of the scheme since its introduction in 2014.

Tax System Incentives

If you’ve developed something new and obtained a patent, written your own copyrighted software, or own intellectual property rights over something equivalent to an invention, then you could apply for the Knowledge Development Box. If you qualify your corporation tax rate drops to 6.25%.

If you don’t yet qualify for the above, but you’re pumping money into research and development, then you might qualify for a 25% tax credit on all R&D expenditure. This can also be offset against your corporation tax liability.

Red Tape

Some of the rules and forms can appear daunting to the uninitiated. If you find the requirements confusing and awkward to navigate, then rather than miss out on potential financial benefits, get in touch with our team at Kane Bergin & Co. We can help you to understand and navigate the maze of requirements and take advantage of the incentives for innovation.

Want to talk with a member of our team? Phone (01) 429 3110 or send a message today