Change your region and language
Be sure to pick the location that matches your preferences.
Revenue have recently published detailed figures on the performance of R&D Credits in Ireland up until 2022. Their Research & Development (“R&D”) Tax Credit Statistics report shows yearly allowable R&D expenditures made by businesses, the value of R&D Tax Credits claimed, and the resulting financial cost to the Irish Government.
The stats point to growth in R&D investment in Ireland, along with a corresponding increase in the value of R&D Tax Credits claimed by businesses. This is welcome news, painting a picture of greater investment in research and development, with companies benefiting from R&D Tax Credits to support their innovations.
The figures do, however, show that while businesses are investing more in R&D – the number of companies claiming isn’t really growing (just two more companies claimed in 2022 than in 2021). Manufacturing R&D Credits accounts for most of the cost to the exchequer, and large businesses are benefiting more significantly and at a much faster rate than SMEs.
In this article, we’ve dived into the figures for the most recent five years to see what they reveal about the health of Irish R&D.
1,631 companies claimed in 2022, which is up by just two companies on the previous year suggesting that there’s not been much growth in the awareness of the scheme.
Manufacturing, Information & Communication, Professional, Scientific & Technical Activities and Financial & Insurance all experienced year-on-year growth in 2022 in the number of companies claiming – with Information & Communication and Professional, Scientific & Technical Activities all seeing consecutive year-on-year growth since 2018.
Most claims in 2022 came from companies working in Manufacturing (26.4%) or Information & Communication (36.1%).
While the number of claim shas remained steady, the total cost to the exchequer has risen by a dramatic 54% year-on-year, from €753 in 2021 to €1,158 in 2022, representing a significant increase. The rise has primarily been driven by the Manufacturing sector, which saw a 66% increase in the total cost to the exchequer, although every sector saw some level of increase from 2021 to 2022.
In fact, the Manufacturing sector accounts for most of the cost for R&D Credits, 64.8% from just 26.4% of all claims. The next largest sector is Information & Communication, which costs the exchequer just 11.7% of the total R&D Credit costs, despite accounting for 36.1% of all claims.
Revenue’s stats for the total amount of R&D Credit claimed isn’t broken by sector, but the figures show the rising value of relief for Irish businesses with increases every year. 2022 saw a 13% year-on-year rise in the total value of R&D Credit claimed.
The figures from Revenue show a year-on-year trend of higher R&D expenditure, with increased investment coming from both SMEs and Large Enterprises. In 2022, the overall total value of expenditure rose by 35% year on year, driven by a 42% jump in expenditure coming from large enterprises (there was a smaller 11% rise in SME expenditure).
At Leyton Ireland, we help innovative businesses maximise their R&D Tax Credits claims.
Our team of experts can help to uncover significant savings from claiming relief on eligible expenses from research and development projects.
Get in touch to find out more about how we can help.
Explore our latest insights
We highlight which software development activities qualify for R&D Tax Credits and answer FAQ...
We explain the Corporate Sustainability Reporting Directive (CSRD), including the 12 European Sus...
Not sure what qualifies as R&D expenditure for R&D Tax Credit claims? We explain what exp...
R&D Tax Credits have helped foster innovation in Ireland for over two decades. However, signi...
