20131112 Mazars R&D Tax Credits_Gerry Vahey
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20131112 Mazars R&D Tax Credits_Gerry Vahey

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With over 30 years experience, Mazars Ireland is a leading professional services firm. Our services include audit and assurance, consultancy, corporate finance and taxation services. We have a broad ...

With over 30 years experience, Mazars Ireland is a leading professional services firm. Our services include audit and assurance, consultancy, corporate finance and taxation services. We have a broad client base spanning the corporate, governmental and institutional sectors along with owner-managed businesses and private wealth.
Mazars Ireland is based in Dublin and Galway with a staff of over 200 people and is part of the integrated international firm, Mazars. A young, growth oriented and ambitious firm, Mazars gives employees the opportunity to work across a wide variety of markets and sectors.

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20131112 Mazars R&D Tax Credits_Gerry Vahey 20131112 Mazars R&D Tax Credits_Gerry Vahey Presentation Transcript

  • MAZARS RESEARCH & DEVELOPMENT TAX CREDIT November 2013
  • ABOUT MAZARS Strong Focus on Adding Value More than 13,500 Employees 71 Countries Strong Focus on Client Service Deep Knowledge and Understanding of Tax Reliefs
  • ABOUT MAZARS: GLOBAL, INTEGRATED, TRUSTED Ireland: 18 Partners and over 225 professional staff Globally: over 850 partners and 13,500 professional staff in 72 countries Joint ventures and representative offices in a further 21 countries View slide
  • TABLE OF CONTENTS • Introduction - What's it all about? • What is R&D? • What Activities Qualify? • Who can Qualify? • How to Claim the Credit? • How Much to Claim? • How to Use the Credit? • Summary - Key Points View slide
  • 01 INTRODUCTION WHAT’S IT ALL ABOUT?
  • INTRODUCTION - WHAT'S IT ALL ABOUT? • R&D Credit - 25% of Expenditure incurred • Generous Relief - Reward Innovation • Introduced in 2003 • Complete overhaul in 2009 • Ongoing Budgetary improvements to R&D Credit • Signals continuing & long term intention • Supported by successive Governments
  • 02 WHAT IS R&D?
  • WHAT IS R&D? • Seeking to achieve a • Scientific or Technological Advancement • Seeking to resolve a • Scientific or Technological Uncertainty • Failed attempts
  • 03 WHAT ACTIVITIES QUALIFY?
  • WHAT ACTIVITIES QUALIFY? Some …. Qualifying Activities prototyping design trials testing moulding workings drawings failed recipes blending reaction extensive testing process & output performance Stability control attempts Qualifying Activities first batch scale up production clinical trials process & output improvements Algorithm & OS development statistical data management generic software improvements
  • 04 WHO CAN QUALIFY?
  • WHO CAN QUALIFY? • Companies within charge to Irish Corporation Tax • MNC's & Large International Groups • SME's & Owner Manager Businesses
  • WHO CAN QUALIFY? Traditional R&D Activities • Research & Development Companies • Laboratory Operations • Pure Research • Product Development
  • WHO CAN QUALIFY? Non Traditional R&D Activities Software Development Software Houses Use in Own Trade Manufacturing / Process Development Mazars Experience - Vast potential in these areas
  • 05 HOW TO CLAIM THE CREDIT?
  • HOW TO CLAIM THE CREDIT? • Submission to Revenue Commissioners: • • • Corporation Tax return - 9 Months after year end, or Written submission - 12 Months after year end. Warning - Very tight window to claim • 31 December 2012 must be claimed before 31 December 2013
  • 06 HOW MUCH TO CLAIM?
  • HOW MUCH TO CLAIM? • Wages & Salaries • Direct Costs • Capital Expenditure • Indirect Costs • Subcontractors & Universities
  • HOW MUCH TO CLAIM? Expenditure Direct Staff Costs Plant & Machinery Buildings (Special Improved Rules Apply) Raw Materials Sub Contracted R&D Costs (Rules) Fixtures & Fittings Direct Overheads Computer Software & Hardware costs Other ?
  • 07 HOW TO USE THE CREDIT?
  • HOW TO USE THE CREDIT? Profitable Companies - paying Corporation Tax Reduce current year Corporation Tax Refund of prior year Corporation Tax Surrender to a Key Employee Excess • Carry forward to offset future Corporation Tax • Refunded by reference to Payroll Taxes paid
  • HOW TO USE THE CREDIT? Loss Making Companies - Nil Corporation Tax • Refunded as three Annual Instalments or • Carry forward to offset future Corporation Tax
  • 08 SUMMARY - KEY POINTS
  • SUMMARY - KEY POINTS • 25% Tax Credit • • White Coat & non White Coat Activities • • Particular opportunities in software and manufacturing Credit has a Cash Value and is readily convertible • • In addition to normal Corporation Tax deduction 12 Month window to make a claim All 2012 claims must be before 31 December 2013.
  • SUMMARY - KEY POINTS • STA & STU – Cut off • Revenue Commissioners Intervention • Use of suitability qualified experts • Expenditure; wholly & exclusively
  • Mazars is present in 5 continents. CONTACT Mazars Harcourt Centre Block 3, Harcourt Road Dublin 2, Ireland Tel: +353 (01) 4494400 Email: mazars@mazars.ie Gerry Vahey gvahey@mazars.ie (01) 449 6423 James Hughes jhughes@mazars.ie (01) 449 6476 mazars.ie