Finance
Ireland increases R&D tax credit rate to 35%, mulls widening scope
Published by Global Banking and Finance Review
Posted on October 7, 2025
1 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 7, 2025
1 min readLast updated: January 21, 2026
Ireland increases its R&D tax credit rate to 35% and plans further changes, focusing on outsourcing and expenditure definitions.
DUBLIN (Reuters) -Ireland will increase the rate for its research and development tax credit that is mainly used by foreign multinationals to 35% from 30%, Finance Minister Paschal Donohoe told parliament on Tuesday.
He also committed to publishing a plan in the coming weeks which will consider additional targeted changes to the regime, including potentially in the areas of outsourcing and qualifying expenditure definitions.
(Reporting by Padraic Halpin and Graham Fahy; Editing by Aidan Lewis)
Research and development (R&D) refers to the activities companies undertake to innovate and introduce new products or services, which can include improving existing offerings.
Corporate tax is a tax imposed on the income or profit of corporations, typically calculated as a percentage of the company's taxable income.
Qualifying expenditure refers to specific costs that can be claimed for tax relief or credits, often related to business activities such as R&D.
Outsourcing is the practice of hiring external firms or individuals to handle certain business functions or processes, often to reduce costs or improve efficiency.
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