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Urgent Revenue update to R&D Performing companies

Revenue has announced that early payments are available for cash instalments of excess research and development tax credits that are due to be paid in 2021. This provides an incentive for companies that are in an R&D repayment situation to expedite filing their corporate tax returns.

Revenue’s e-Brief communicates that the legislation (Sections 766 and 766A of the Taxes Consolidation Act 1997) which provides that an excess R&D tax credit, as specified in the section, will be paid to the company concerned in three instalments. Sections 766 and 766A provide that each of these instalments is to be paid not earlier than the date specified for that instalment in the section.

In the exceptional circumstances of the Covid-19 pandemic and subject to appropriate checks in selected cases, Revenue will expedite the payment of any instalment of excess R&D tax credit that is due to be paid in 2021, bringing forward payment in advance of the date provided by Sections 766 and 766A.

Requests for Revenue to expedite the payment of any 2021 instalments of excess R&D tax credits should be made through MyEnquiries. To enable payment of the excess credits, the form CT1 for the company’s accounting period ending in 2020 and for accounting periods ending up to March 2021 must, at the time of the request, be submitted.

Should you require assistance with the above and its application or you have any questions concerning the items in this alert, please contact a member of our Gi3 Ireland team.

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