Dáil Éireann Debate, Wednesday - 16 October 2019
87. Deputy Robert Troy asked the Minister for Finance the first year and full year cost to the Exchequer following the changes announced in budget 2020 of the change to the research and development tax credit (details supplied) in tabular form. [42372/19]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the Budget 2020 change to increase the Research and Development (R&D) tax credit from 25% to 30% on qualifying expenditure for relevant micro and small companies. This measure is being introduced subject to State aid approval.
I am advised by Revenue that the estimated cost of increasing the rate from 30% to the levels indicated by the Deputy, for micro and small companies only, is set out in the following table. These costs do not include the impact of any behavioural change.
|
Proposed Rate for Small and Micro Companies |
Tax Cost €m |
|
31% |
3.6 |
|
32% |
7.2 |
|
33% |
10.8 |
|
34% |
14.4 |
|
35% |
18.0 |
|
36% |
21.6 |
|
37% |
25.2 |
|
38% |
28.8 |
|
39% |
32.4 |
|
40% |
36.0 |
