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With over 30 years experience, Mazars Ireland is a leading professional services firm. Our services include audit and assurance, consultancy, corporate finance and taxation services. We have a broad client base spanning the corporate, governmental and institutional sectors along with owner-managed businesses and private wealth. Mazars Ireland is based in Dublin and Galway with a staff of over 200 people and is part of the integrated international firm, Mazars. A young, growth oriented and ambitious firm, Mazars gives employees the opportunity to work across a wide variety of markets and sectors.
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MAZARS RESEARCH & DEVELOPMENT TAX CREDIT
November 2013
ABOUT MAZARS
71 Countries
More than
13,500 Employees
Strong Focus on Client Service
Deep Knowledge and Understanding of Tax
Reliefs
Strong Focus on Adding Value
Ireland: 18 Partners and over 225 professional staff
Globally: over 850 partners
and 13,500 professional
staff in 72 countries
Joint ventures and
representative offices in a
further 21 countries
ABOUT MAZARS: GLOBAL, INTEGRATED, TRUSTED
TABLE OF CONTENTS
• Introduction - What's it all about?
• What is R&D?
• What Activities Qualify?
• Who can Qualify?
• How to Claim the Credit?
• How Much to Claim?
• How to Use the Credit?
• Summary - Key Points
INTRODUCTIONWHAT’S IT ALL ABOUT?01
INTRODUCTION - WHAT'S IT ALL ABOUT?
• R&D Credit - 25% of Expenditure incurred
• Generous Relief - Reward Innovation
• Introduced in 2003
• Complete overhaul in 2009
• Ongoing Budgetary improvements to R&D Credit
• Signals continuing & long term intention
• Supported by successive Governments
WHAT IS R&D?
02
WHAT IS R&D?
• Seeking to achieve a
• Scientific or Technological Advancement
• Seeking to resolve a
• Scientific or Technological Uncertainty
• Failed attempts
WHAT ACTIVITIES QUALIFY?03
WHAT ACTIVITIES QUALIFY?
prototyping design trials
testing moulding workings
drawings failed attempts
recipes blending reaction
extensive testing process &
output performance Stabilitycontrol
first batch scale up production
clinical trials process &
output improvements
Algorithm & OSdevelopment statisticaldata management generic
software improvements
Qualifying Activities
Some …. Qualifying Activities
WHO CAN QUALIFY?
04
WHO CAN QUALIFY?
• Companies within charge to Irish Corporation Tax
• MNC's & Large International Groups
• SME's & Owner Manager Businesses
WHO CAN QUALIFY?
Traditional R&D Activities
• Research & Development Companies
• Laboratory Operations
• Pure Research
• Product Development
WHO CAN QUALIFY?
Non Traditional R&D Activities
� Software Development
� Software Houses
� Use in Own Trade
� Manufacturing / Process Development
� Mazars Experience - Vast potential in these areas
HOW TO CLAIM THE CREDIT?05
HOW TO CLAIM THE CREDIT?
• Submission to Revenue Commissioners:
• Corporation Tax return - 9 Months after year
end, or
• Written submission - 12 Months after year end.
• Warning - Very tight window to claim
• 31 December 2012 must be claimed before 31
December 2013
HOW MUCH TO CLAIM?
06
HOW MUCH TO CLAIM?
• Wages & Salaries
• Direct Costs
• Capital Expenditure
• Indirect Costs
• Subcontractors & Universities
HOW MUCH TO CLAIM?
Expenditure
Direct Staff Costs
Raw Materials
Direct Over-heads
Computer Software &
Hardware costs
Sub Contracted R&D Costs
(Rules)
Plant & Machinery
Buildings (Special
Improved Rules Apply)
Fixtures & Fittings
Other ?
HOW TO USE THE CREDIT?07
HOW TO USE THE CREDIT?
Profitable Companies - paying Corporation Tax
� Reduce current year Corporation Tax
� Refund of prior year Corporation Tax
� Surrender to a Key Employee
� Excess
• Carry forward to offset future Corporation Tax
• Refunded by reference to Payroll Taxes paid
HOW TO USE THE CREDIT?
Loss Making Companies - Nil Corporation Tax
• Refunded as three Annual Instalments
or
• Carry forward to offset future Corporation Tax
SUMMARY - KEY POINTS08
SUMMARY - KEY POINTS
• 25% Tax Credit
• In addition to normal Corporation Tax deduction
• White Coat & non White Coat Activities
• Particular opportunities in software and manufacturing
• Credit has a Cash Value and is readily convertible
• 12 Month window to make a claim
• All 2012 claims must be before 31 December 2013.
SUMMARY - KEY POINTS
• STA & STU – Cut off
• Revenue Commissioners Intervention
• Use of suitability qualified experts
• Expenditure; wholly & exclusively
mazars.ie
Mazars is present in 5 continents.
CONTACT
Mazars
Harcourt Centre Block 3, Harcourt Road
Dublin 2, Ireland
Tel: +353 (01) 4494400
Email: [email protected]
Gerry Vahey [email protected]
(01) 449 6423
James Hughes [email protected]
(01) 449 6476
