Tuesday, 1 October 2019

Ceisteanna (143, 144)

Robert Troy

Ceist:

143. Deputy Robert Troy asked the Minister for Finance the estimated first and full-year cost of a proposal by an organisation (details supplied). [39655/19]

Amharc ar fhreagra

Robert Troy

Ceist:

144. Deputy Robert Troy asked the Minister for Finance his views on a proposal by an organisation (details supplied); and the estimated costs which would arise. [39656/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 143 and 144 together.

Regarding Question No. 143, on the basis of claims in respect of research and development tax credit for 2017, the latest year available, the estimated cost of increasing the credit rate from 25% to 30% for SMEs is up to c.€27 million in a full year and c.€16m in the first year. However it is possible that the cost could be lower due to the limits on the payable credit.  This cost does not take account of any possible behavioural change by companies to avail of the increased credit. 

Regarding Question No. 144, on the assumption that all SMEs avail of this proposal, and assuming no behavioural change, I am advised by Revenue that, while the measure would be cost-neutral over the longer term, the first year cost of the measure, based on the cashflow impact to the Exchequer, is likely to be of the order of c.€57 million. This is due to the second and third installments of the repayable credit being paid along with the first installment.