Tax deal on research activity to help small businesses

Ireland’s government is extending a taxation regime already available to multinational companies to smaller, indigenous companies who will see profits arising from investment in research taxed at a much lower rate.

Jobs minister Mary Mitchell O’Connor, announced the Knowledge Development Box taxation scheme on 25 October. It encourages companies to invest in research with the promise that a lower corporate tax rate of 6.25 per cent will be applied on profits resulting from qualifying R&D carried out in Ireland.

The scheme for indigenous companies will be overseen by the Patents Office. A bill creating the scheme is expected to be passed before the end of the year, Mitchell O’Connor said in a statement.