Thursday, 5 December 2019

Questions (77, 78)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Finance the annual cost of the research and development tax credit for the past five years including 2019; the number of companies that availed of the scheme in each of the years, by multinational and SME companies; and if he will make a statement on the matter. [51034/19]

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Michael McGrath

Question:

78. Deputy Michael McGrath asked the Minister for Finance the annual cost of the knowledge development box in each year since its creation; the number of companies that availed of the scheme in each of the years, by multinational and SME companies; and if he will make a statement on the matter. [51035/19]

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Written answers (Question to Finance)

I propose to take Questions Nos. 77 and 78 together.

I am advised by Revenue that the annual cost of the Research and Development (R&D) tax credit and the number of companies that availed of it for years up to 2017, the most recent year for which data is available, is published on the Revenue website at the following link:

https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/r-and-d-tax-credits.aspx.

The available information in respect of multinational and SME companies is split between companies administered by Revenue’s Large Corporates Division (LCD) and non-LCD companies. Most of the companies administered by LCD are multinational companies. Also shown is the distribution of the R&D claims by the number of employees of the claimant companies.

The Deputy will be aware that I am introducing a number of amendments to the R&D tax credit as part of this year’s Finance Bill, including additional supports for micro and small companies which will be subject to State aid approval.

In relation to the Knowledge Development Box (KDB), the number of claimants and cost are published in Revenue’s paper on 2018 Corporation Tax payments and 2017 tax returns, which is available on the Revenue website at the following link: https://www.revenue.ie/en/corporate/documents/research/ct-analysis-2019.pdf Table 13 of the paper shows the KDB claims. Due to the small numbers of taxpayers claiming KDB, Revenue cannot comment further on the size of the claimant companies.

The Deputy may be aware that a claimant company has a period of up to 24 months to make a claim for KDB relief. It is anticipated that companies will make use of the 24 month time frame available. Final figures in respect of 2017 and preliminary figures in respect of 2018 will become available in 2020, following analysis of corporation tax returns by Revenue.