Leyton Ireland has said that yesterday’s Budget’s failure to enhance the R&D tax relief offering “may cause companies to question this country’s seriousness about repositioning itself as a global innovation hub.”
The consultancy firm, which specialises in optimising R&D incentives, said that simply managing to keep the tax credit should not be considered “a successful outcome.”
They noted that the National Recovery Plan recognised how important it was for the country to re-invent itself as a location of choice for companies engaging in research and development activities.
“We were hopeful that the Government would use this Budget to put their words into action,” said Eoin Brennan, consulting manager at Leyton.
“Enhancements to the current R&D tax credit regime would have made such an impact. However, this has not happened.
“In the meantime, other countries are consistently developing and enhancing their R&D tax relief incentivism,” he said.
Brennan fears that Ireland now runs a risk of losing its competitiveness, getting left behind in attracting and retaining companies which could stimulate economic recovery.
In a statement, the firm mentioned the removal of the exemption for patent royalty income, which Brennan felt “confused” the message that Ireland “wants and needs” to send.
The firm also feels that the 12.5pc corporation rate is not enough to ensure that levels of foreign direct investment into Ireland are maintained and increased.
Instead, Leyton calls for a “cohesive, holistic” set of tax measures to give the country a competitive edge in bringing companies in and keeping them here.
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