![2024 RDTC claims: Pre-notification requirement - Forvis Mazars in ireland](https://www.forvismazars.com/var/mazars/storage/images/_aliases/card/6/5/9/8/61458956-1-eng-GB/5ff09dbae128-Worker-in-Factory-Clean-Room.jpg.webp)
2024 RDTC claims Pre-notification requirement
The Finance (No.2) Act 2023 introduced key changes to the Research and Development (R&D) tax credit regime, most notably the increase in the rate of the R&D tax credit (RDTC) rate from 25% to 30%.
Where the outsourced activity is undertaken by a person who could not claim the R&D tax credit (for example an individual, or by a non-resident 3rd party which does not have a branch in Ireland), then Revenue will accept that a notification is not required in these cases.
The purpose of the notifications procedure is to eliminate a situation where two different companies are claiming the R&D tax credit for the same costs.
Companies planning to claim subcontractors costs as part of their overall R&D tax credit claim must notify subcontractors in advance of every payment or on the date the payment is made. There is no prescribed notification document or method, but a record of this notification should be maintained (e.g. email correspondence).
Failure to notify subcontractors in advance of every payment may result in Revenue seeking to disallow some or all of the outsourced R&D expenditure included in a company’s R&D tax credit claim.
If you have any questions in relation to the above, or if you would like to discuss this topic further, please contact a member of the Mazars private client team below.
This website uses cookies.
Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you.
For more information on the cookies we use, please refer to our Privacy Policy.
This website cannot function properly without these cookies.
Analytical cookies help us enhance our website by collecting information on its usage.
We use marketing cookies to increase the relevancy of our advertising campaigns.