Tom Maguire: How our tax regime could sweeten the pill for future R&D

A tax credit won’t be R&D’s driving force, but it can be a factor in determining where such R&D happens – so our tax rules need to be sufficiently attractive for it to be carried on here

Companies should be encouraged to invest in R&D and ensure that they get the benefit for the specific costs essential to the R&D process. Picture: Getty

Paschal Donohoe announced in the Dáil in February that a review of the research and development (R&D) tax credit was to take place during this year.

The Minister for Finance explained that it would consider the potential impact of the agreement reached at the OECD/G20 on base erosion profit shifting (BEPS) and any elements of the ongoing process of international tax reform which may be of relevance.

The review will inform any policy considerations in ...