2024 R&D Tax Credit (RDTC) claims: Pre-notification requirement

This adjustment means that a €1 million R&D spend can now generate a refundable RDTC of €300,000 (i.e. €1m X 30%).

The changes are effective for accounting periods beginning on or after 1 January 2024.

A noteworthy change requires companies making their first RDTC claim, who haven’t claimed in over three years, to pre-notify Revenue in writing of their intention to make a claim. This notification must be submitted at least 90 days before the RDTC claim is made.

Key deadlines for R&D tax credit claims

• The RDTC must be claimed within 12 months of the end of the relevant accounting period. For instance, for an accounting period ended 31 December 2024, the RDTC claim must be filed on or before 31 December 2025.
• If pre-notification is required, it must be submitted to Revenue on or before the end of September 2025.

Pre-notification requirements

The pre-notification will be a prescribed form and requirements include:

• Company name, address and corporation tax number.
• A description of the research and development activities carried out by the company.
• The number of employees engaged in R&D activities.
• Expenditure incurred by the company on R&D activities, funded directly or indirectly by grant assistance.

This pre-notification requirement is a new measure but follows on from similar practices in other jurisdictions. It will provide Revenue with visibility of the nature of the R&D activity undertaken by the claimant along and related expenditure but may see claims disallowed where the pre-notification deadline is missed.

This pre-notification requirement not only aids companies in planning their processes in advance but also expedites the evaluation of claims by Revenue. The full version of the Pre-filing Notification Form can be found here.

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