Almost 300 multinational companies in a broad range of industry sectors are active in R&D in Ireland. Two thirds of business R&D is carried out by foreign affiliates in Ireland. In addition to the availability of high quality graduates, flexible funding mechanisms are available to companies who wish to conduct research, or for collaboration in research with Universities and third level institutions.
Funding is available to Shannon Free Zone resident companies to support the development of research activities and for collaborative industry/academic research. A 20% R&D tax credit for qualifying expenditure on R&D is available. The Irish government has committed to spending €2.5 billion in R&D under the National Development Plan 2000-2006. By 2010, Ireland will be internationally renowned for the excellence of its research and be at the forefront in generating and using new knowledge for economic progress.
Shannon Free Zone is where the key R&D Centre for the Finnish-headquartered Tecnomen Company is located where 65% of their 125-strong workforce is engaged in Research & Development. Intel employs 90 staff dedicated to R&D at Shannon.
Read about Intel at Shannon and R&D Incentives including - R&D Tax Credit, R&D Capbility Grant Scheme, RTI Scheme, The Innovation Partnership Initiative and Stamp Duty on Intellectual Property. Research and Development Factsheet
The Irish tax treatment of intellectual property is dependant on the nature of the IP rights and can be summarized as follows:
Scientific Research: revenue and capital expenditure on activities in the field of natural or applied science for the extension of knowledge is allowable as a trading expense in the year in which the expenditure is incurred. The write off is not available for mining or petroleum related research.
Patents: can be written off by a tax deduction generally claimed over 17 years on a straight-line basis, or over the life of the patent if less than 17 years.
Know how (industrial): can be written off fully as a trading expense in the year in which it is incurred. The write off is not available where the know-how was part of an acquired business or purchased from a related party.
Software: is written off over 8 years on a straight-line basis, where the software is used for business purposes.
Trademarks: no tax deduction is available for the cost of developing or acquiring trademarks, although a deduction is available for the cost of obtaining the registration of a trademark.
Copyright: as per trademark above.
Other (including brands): no tax deduction is available for the purchase of other IP assets, although it may be possible to obtain a revenue deduction for costs incurred to build a brand i.e. advertising, promotion etc.