2.3 MECHANICAL ENGINEERING
Ireland’s R&D tax credit system is ofmajor benefit to both multinational companies and SMEs operating in Ireland. The R&D tax credit was first introduced in Finance Act 2004 and offers a company undertaking R&D in Ireland a significant tax break, representing a potential 25% refund of costs incurred.This expenditure is also allowable as a Corporation Tax deduction, giving an effective deduction of 37.5% in a company’s tax liability.
Doherty, B.et al. (2019) Research & Development Tax Credit, Innovation and Knowledge Management module, School of Mechanical and Design Engineering TUDublin.