Global giants Price Waterhouse Cooper (PwC) have called for the reform of Ireland’s current Research and Development (R&D) tax credit scheme. At aconference held in Dublin yesterday, R&D leader Stephen Merriman said that while multinational investment is essential, Ireland needs to generate its own home grown technology.
“Countries are constantly evolving and enhancing their R&D tax policies as innovation is widely considered to be a critical stimulus for economic growth” said Merriman.
In recent years, innovation has largely been lead by large multinational companies who enjoy attractive tax rates in Ireland. However, Minister for Jobs, Enterprise and Innovation, Richard Bruton has revealed intentions to improve the R&D tax credit system so that it will benefit both international and domestic enterprises.
Citing France as an example, PwC discussed the options available for first time enterprises, such as tax credit rates of 40 per cent and an excellent refund system which provides an immediate cash flow benefit that would be extremely beneficial to Irish start ups given the current equity gap.