Leyton has called on the Irish Government to not only protect the R&D tax credit in the upcoming December Budget, but enhance it in order to head toward economic recovery.
This comes in light of the current political and economic turmoil facing the country, after the Irish Government accepted a bailout package from the EU in the region of €80bn and €90bn.
Leyton has said the current legislation, while helpful, needs to be expanded on in order to lead Ireland into economic growth and high-value job creation.
In a submission to the Department of Finance for the next budget, Leyton has asked that the Government increase the R&D tax credit from 25pc to 30pc, change it from an incremental to a volume-based tax credit and ensure it can be taken “above the line.”
Leyton also said the Government should attract key R&D personnel, increase or remove the outsourcing cap and enhance the cash refunds of the R&D tax credit.
“The R&D tax credit scheme works, we know it works, it has been proven,” said Eoin Brennan, consulting manager at Leyton.
“All you need do is look at the long list of companies that are located here and are engaged in high-quality R&D activities.
“However, while other countries are developing and improving their R&D tax relief schemes to make them more appealing for qualifying companies, Ireland needs to do the same to ensure we stay ahead of the international competition and do not get left behind in terms of our R&D tax relief offering.
“Companies will simply choose other countries to set up their R&D activities. Getting people back to work needs to be a top priority and further investment in R&D will create the jobs this country so badly needs,” said Brennan.