I propose to take Questions Nos. 185 and 186 together.
I am advised by Revenue that data in respect of the breakdowns requested by the Deputy are not currently available for statistical analysis, as such, the requested breakdowns cannot be provided.
With regard to 2023 data, the Deputy will be aware that Finance Act 2022 introduced amendments to the R&D tax credit regime in respect of the manner in which a claim is made and a payment is received, to ensure the credit aligns with the definition of ‘Qualified Refundable Tax Credit’ for Pillar Two purposes. It introduced:
• A new fixed three-year annual instalment structure which provided that the first instalment shall in general equal 50% of the amount of the R&D tax credit claimed, the second instalment is 30% in year two and the third instalment is the remaining balance of 20% in year three.
• The introduction of the first-year payment threshold, which allowed €25,000, or the amount of the R&D tax credit if lower, to be payable in full in year one.
• The option to call for the payment of the R&D tax credit or request for the R&D tax credit to be offset against other tax liabilities.
• The removal of the caps that were in place in relation to the payable element of the R&D tax credit.
For a transitional period, which in general applies in respect of accounting periods ending between 31 December 2022 and 30 December 2023, a company could elect to claim the credit in either manner as set out below. During this transitionary period companies had the option to make claims in accordance with the pre-Finance Act 2022 payments system or in accordance with the new payment structure. As a result, the 2023 statistical data includes a blend of data arising from pre and post Finance Act 2022 measures, meaning that this data is not sufficiently robust to provide the granular level of data requested by the Deputy.
Data in respect of claims of the R&D tax credit in 2024 is currently not available but is expected to be published later this year. Data on the 2025 claims of the R&D tax credit will not be available until 2027.
