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The UK’s R&D regime has been incredibly attractive for many years.
Further, HMRC has consistently taken a ‘light touch’ approach to its supervision of the regime.
However, it has been clear for a number of years that there is a core of ‘specialist’ companies that might have taken a somewhat bullish approach to some of their claims.
As such, for some time, there has been speculation over whether the regime is ripe for reform.
To an extent, we are now starting to see that reform reflected in the changes recently announced / confirmed at the recent fiscal events.
Further, over the weekend, we have seen the Treasury open a consultation on reforming the R&D regime. The proposal is that the current dual system of an SME and a RDEC regime is merged into one.
Change is certainly coming…
There will be material changes to the UK’s Research & Development Tax regime.
These will be introduced with effect from 1 April 2023.
The changes will impact:
It is stated that the measures will ensure that:
It is clear that the changes to the SME scheme are being introduced as a response to perceived error and abuse of the regime. It is a shame that some bad actors have resulted in a dialling back of the benefits for all SMEs.
In addition, the new consultation release suggests the government is eye-ing up a merged, unified regime.
The rate and form of relief depends on whether the company can claim under the SME regime or only under the R&D expenditure credit (“RDEC”) regime. Large companies can only claim under RDEC along with some SMEs who are outside of the SME regime.
Under the SME regime relief is available as follows:
As referred to above, this is targeted at larger companies. However, in certain circumstances, it might be an SMEs claiming RDEC.
The RDEC uses a different method of calculating corporation tax relief on R&D expenditure. This is sometimes referred to as an “above the line” credit claimed as a cash payment.
For expenditure incurred on or after 1 April 2023 the various rates will change. The old and new rates are as follows:
| Profile of taxpayer | Up to 31 March 2023 | From 1 April 2023 |
| RDEC Company | RDEC Credit: 13% Corporation tax (“CT”) rate: 19% Benefit: 10.5% | RDEC credit: 20% CT rate: 25% Benefit: 15% |
| SME (in profit) | Enhanced deduction: 130% Benefit: 24.7% | Enhanced deduction: 86% Benefit: 21.5% |
| SME (loss-making) | R&D credit: 14.5% Benefit: 33.4% | R&D credit: 10% Benefit 18.6% |
In addition to the above, the Government is also introducing territorial restrictions to the regime.
These rules will apply to subcontracted R&D expenditure along with payments for externally provided workers (“EPWs”).
Subcontracted R&D activity will need to be performed in the UK.
EPWs will need to be subject to UK PAYE.
Expenditure in respect of overseas activity will still qualify in some limited circumstances.
In better news, expenditure on the cost of data licences and cloud computing will now constitute qualifying expenditure.
Companies will be subject to a new online pre-notification requirement where:
The new procedure means that the company must inform HMRC of:
within six months of the end of the relevant accounting period (unless the full claim has been submitted within the six-month deadline.) Previously, the only deadline has been the two year (following the end of the relevant accounting period) deadline for making a claim.
As stated above, these changes are also now joined by the announcement over the weekend of a new Government consultation on a new, unified R&D regime.
In a previous consultation, had asked views around whether the two schemes should be merged into one. This new consultation develops that idea further.
It appears that the government is coalescing around an ‘above the line’ credit for all parties. In other words, the SME regime will be replaced by a regime that looks more like RDEC for all.
The consultation document also alludes that additional relief might be available to either “R&D intensive companies” and / or “different types of R&D”. In the case of the latter, it might be that relief is targeted at activity with a “social value”.
Following on from any consultation, the new unified regime will be announced at a future fiscal event and implemented, as things stand, for expenditure incurred from 1 April 2024.
The reduction in the rate for SMES is disappointing. This is particularly the case for start-ups for which the ability to claim the repayable tax credit can be an important source of cash.
On the other hand, the increase in the RDEC is to be welcomed and should make the UK’s scheme more competitive internationally.
It is good to see that the categories of qualifying expenditure will be expanded to include data and cloud computing.
The changes in the process for making an R&D claim will be particularly relevant for companies who have not made a claim in the past. They will need to get their affairs in order much more quickly bearing in mind the new six-month deadline.
Finally, the enthusiasm for a unified system is perhaps not wholly unexpected either. The UK is perhaps unusual in offering a dual system.
It is hoped that the Government and all stakeholders can bash into shape a unified system t that preserves the attractive benefits for those currently utilising SME relief and RDEC but manages to ensure that relief is properly targeted and abuse minimised.
Watch this space.
If you have any queries relating to the Research & Development Tax Changes in the UK or tax matters in the UK more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
In 2020, the EU’s Anti-Tax Avoidance Directive II (“ATAD II“) came into force.
This led to EU Member States being required to implement into domestic law a suite of so-called “anti-hybrid” laws.
The aim of the anti-hybrid rules is, unsurprisingly, to eliminate the potential to exploit ‘hybrid features’ in a structure.
For example, the rules might address a hybrid instrument that is treated as debt in one jurisdiction but equity in another jurisdiction. Alternatively, they might target a hybrid entity which is treated as tax transparent in one jurisdiction and tax opaque in another jurisdiction.
One such anti-hybrid rule is the “reverse hybrid” rule.
This was introduced in a number of countries including Luxembourg.
The purpose of the “reverse hybrid” rule is to counteract “double non-taxation outcomes”.
Such an outcome might arise where an entity, e.g. a Luxembourg fund partnership, is treated as tax transparent in Luxembourg but tax opaque in the jurisdiction of one of its investors.
Why might this lead to ‘double non-taxation?’
Running with the example above, the Luxembourg fund partnership is not taxed in Luxembourg because it transparent for tax purposes. In other words, the entity does not pay tax, only the partners in the partnership.
However, that same income is also untaxed in that investor’s jurisdiction as a result of that jurisdiction deeming the income to have been paid by an opaque entity.
The rule may be triggered if:
This is subject to certain aggregation or “acting together” rules.
Where it is engaged, our fund partnership would be treated as a corporate for tax purposes in Luxembourg. As such, it becomes subject to Luxembourg corporate income tax.
Luxembourg amended its “reverse hybrid” on 23 December 2022.
This was to clarify certain conditions that must be satisfied in order for it to be engaged.
The conditions can be summarised as follows:
The reason for the amendment was that they overreached and counteracted certain mismatches that were not caused by hybridity – but rather as a result of an investor’s tax exempt status.
The amendment has retrospective effect from 1 January 2022.
If you have any queries relating to Luxembourg’s Reverse Hybrid Rule Amendments or tax matters in the Luxembourg more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
In December 2022, Kazakhstan amended its tax legislation.
We set out some of the relevant amendments in this article.
New restrictions will be imposed in relation to Kazakhstani companies seeking to apply double tax treaty benefits.
The changes relate to the following payments made to a foreign related party:
In particular, where a related party is in receipt of income, then the treaty rates may only be applied if the recipient is subject to an effective income tax rate of at least 15% on receipt in its home country.
This change was effective from 1 January 2023.
Here, individuals that are not classed as independent contractors will now become withholding agents in relation to capital gains in respect of share deals.
As such, they will need to deduct and withhold capital gains tax from the purchase price of shares. They will then need to pay this over to the authorities.
This change will take effect from 21 February 2023.
For those with, or clients with, subsidiaries in Kazakhstan, we would suggest reviewing these changes in line with any proposals to pay dividends, royalties or interest.
Further, those dealing with individuals who will now be brought within the capital gains tax withholding requirements then they should ensure they consider their compliance with these obligations.
If you have any queries relating to the Kazakhstan’s recent tax amendments or tax matters in Kazakhstan more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article.
Draft legislation has been approved by Thailand’s cabinet paving the way for the introduction of a Financial Transactions Tax (“FTT”).
The tax will apply to securities traded on the Stock Exchange of Thailand (“SET”).
This does away with a tax exemption that has been in place for over three decades.
Assuming that it ultimately finds its way onto the statute book, it is envisaged that it will apply to transactions starting from April 2023.
As alluded to above, the sale of securities through SET has been exempt from specific business tax since the end of 1991. The rationale was that this would stimulate trading on the secondary market and providing a shot in the arm for the domestic economy.
The FTT essentially acts to repeal this exemption. It is an indirect, transactional tax imposed on income from the gross receipts from share disposals.
Broadly speaking it will be those that are selling securities who will be liable for FTT.
However, the draft law also requires brokers to withhold FTT from the share sales income and to pay these amounts to the Revenue on behalf of the seller.
It is anticipated that the new FTT tax will be introduced in two phases.
These phases are as follows:
| Which phase? | Rate of FTT (inc local tax) | Expected date of commencement |
| Phase one | 0.055% x gross income from share disposals | With effect from April 2023 |
| Phase two | 0.11% x gross income from share disposals | With effect from January 2024 |
The FTT will apply to the following:
Some persons are specifically exempted.
If you have any queries relating to the new Thailand Financial Transactions Tax or tax matters in Thailand more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
Eventually, after a number of failed attempts, the EU has reached agreement on the Minimum Taxation Agreement.
The 27 European Union Member States reached agreement on the 12 December 2022.
The agreement clears the way for the implementation of a minimum level of taxation for the largest companies. These reforms are also known as the Pillar Two or Minimum Taxation Directive.
The Directive has to be transposed into Member States’ national law by the end of 2023.
Broadly, the agreed Directive reflects the global OECD agreement with some adjustments.
The new agreement will apply to any large group of companies whether domestic or international. The rules will apply to such organisations with aggregate revenues of over €750 million a year. As such, it will only apply to the biggest companies around the globe.
It should be noted that it is necessary for either the parent company or a subsidiary of the group to be situated within the EU.
The effective tax rate is established for a location by dividing the taxes paid by the entities in the jurisdiction by their income.
Where this calculation results in a rate of tax below 15% then the group must ‘top-up’ the tax paid such that the overall rate is 15%.
The development means that the EU will be a pioneer around Pillar Two. However, it seems highly likely that other jurisdictions (I.e non-EU) will follow suit.
Further, by the end of this month (Jan 2023), it is expected that the OECD will publish its own guidelines for Pillar Two. Again, these should act as a catalyst for wider adoption of Pillar Two internationally.
In addition, it is expected that they will shed some light on some of the key outstanding issues around how the US rules (such as US GILTI rules) will conform with Pillar Two.
If you have any queries about the EU agreement on Pillar Two, or international tax matters generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
The United States and Croatia signed their first double tax treaty (“treaty”) on 8 December 2022.
This means that all member states of the European Union (“EU”) now has a tax treaty with the US, as Croatia was the ‘last man standing’ in terms of not having such a treaty.
So, what does the treaty say?
| Item | Description |
| Dividends | The treaty reduces withholding taxes (“WHT”) on dividends. The treaty rate is capped at 15%. One exception is where the beneficial owner of the dividend is a company which has held a direct interest of at least 10% of the company paying the dividends for the preceding twelve-month period. Here, the maximum rate under the Treaty is reduced to 5%. In addition, dividends generally paid to certain pension funds qualify for a full exemption from WHT in the source company. |
| Interest | The treaty seeks to eliminate WHT on most interest payments. However, WHT is payable and capped at 15% in some circumstances. Those circumstances include: interest arising in Croatia that is determined with reference to receipts, sales, income, profits or other cash flow of the debtor, to any change in the value of any property of the debtor or to any dividend, partnership distribution or similar payment made by the debtor interest arising in the United States that is contingent interest of a type that does not qualify as portfolio interest under the law of the United States. |
| Royalties | The treaty limits WHT on royalties to 5%. |
| Reservation | In the treaty, the US reserves the right to impose what is known as the “BEAT” tax under US Internal Revenue Code section 59A (“Tax on Base Erosion Payments of Taxpayers with Substantial Gross Receipts”). This applies to relevant profits of a company resident in Croatia and attributable to a US permanent establishment. |
| Limitation on benefits (“LoB”) | Those familiar with double tax treaties where one of the contracting parties is the US will be familiar with the LoB article. Broadly, such a clause has applied since the introduction of the 2016 US model tax convention. It is a complex limitation on benefits clause. The result of the LoB in this case means that the application of the treaty is generally limited to “qualified persons” as defined in Article 22 of the Treaty. In general, Article 22(2) requires a resident to be a qualified person at the relevant time that treaty benefits are sought. For the ownership-base erosion test under Article 22(2)(f), the resident must also satisfy the ownership threshold on at least half of the days of any 12-month period that includes the date when the treaty benefit would be accorded. Alternatively, a resident that is not a qualified person under paragraph 2 may still be eligible for treaty benefits for an item of income if it meets one of the other tests under the LOB provision, namely the active trade or business test (ATB test), derivative benefits test or headquarters company test under Articles 22(3), (4) and (5) respectively. |
The signing of the treaty by the US and Croatia is a welcome development. It will clearly be of great application to businesses and individuals operating across the two jurisdictions.
The Treaty will enter into force after both contracting parties have approved it in accordance with their internal legislative procedures.
If you have any queries about the United States / Croatia double tax treaty, or US tax or Croatia tax matters more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
The Irish Finance Bill 2022 provides for changes to:
Both changes are to reflect the OECD’s Pillar Two model rules and the EU’s draft Pillar Two Directive.
Ireland has an attractive R&D tax credit for qualifying expenditure on R&D activities. This includes certain expenditure on plant and machinery and buildings.
The credit is currently 25% of the allowable expenditure.
The mechanics of the regime are that the tax credit can be offset against the claiming company’s current and prior year corporation tax liability. In addition, any excess credit may be:
The OECD Pillar Two model rules and the EU draft Pillar Two Directive introduce the concept of a “qualified refundable tax credit” (QRTC).
Going forward, the R&D tax credit regime in Ireland will need to be consistent with QRTC requirements.
In order to qualify as a QRTC require, the tax credit to be paid as cash (or available as cash equivalents) within four years of the date on which the taxpayer is first entitled to it.
A tax credit that qualifies as a QRTC will be treated as income and not as a reduction in taxes paid. This is important when it comes to calculating the relevant effective rate of tax rate for the purposes of the global minimum corporate tax rate.
The Finance Bill proposals seek to revise the R&D tax credit so that it is consistent with the QRTC criteria. This will include providing that the credit is fully payable in cash or cash equivalents.
The new proposals under the Finance Bill measures provide that the first instalment of the R&D tax credit should be equal to the greater of:
The cap on payable credits linked to the corporation tax/payroll tax payments will no longer apply.
A consequence of the change is that companies that could have obtained the full value of the credit in a current year versus their corporation tax liabilities, will now instead see that benefit spread over three years.
In addition, to ensure alignment with the Pillar Two rules, the R&D credit should be paid within the four-year period. This includes where there is an open investigation by the tax authority.
The Finance Bill also provides for Pillar Two related changes to Ireland’s KDB.
The KDB is a form of patent box regime and provides for a 50% reduction of qualifying income. This results in an effective tax rate of 6.25% for the taxpayer in respect of the qualifying income.
However, the requirements are relatively strict and it is understood that uptake has been limited
The Finance Bill measures provide that the KDB trading expense deduction is reduced from 50% to 20% of qualifying income. This results in a new effective rate of 10% as opposed to the existing 6.25% on qualifying income.
If you have any queries about the Irish Finance Bill 2022, or Irish tax matters more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
Today, Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (hereinafter referred to as the “Corporate Tax Law”) was issued by the United Arab Emirates (“UAE”).
The UAE Corporate Tax Law provides the legal basis for the introduction of corporate tax in the UAE. It will be effective for financial years starting on or after 1 June 2023.
The introduction of Corporate Tax is intended to help the UAE achieve its strategic objectives and accelerate its development and transformation.
Further, by introducing a regime that better reflects international standards, it is hoped these changes will fortify the UAE’s growth as a jurisdiction for business and investment.
The following will be “Taxable Persons”:
Non-natural persons established in a UAE Free Zone are also within the scope of Corporate Tax as “Taxable Persons”. As such, they will need to satisfy the requirements set out in the Corporate Tax Law.
An important qualification is around so-called Qualifying Free Zone Persons. These characters will pay 0% on their Qualifying Income. We discuss these terms below.
The UAE Corporate Tax Law taxes income with regard to the following bases:
Broadly, the exposure to UAE corporate tax is as follows:
Residence for Corporate Tax purposes is not determined by where a person resides or is domiciled but instead by specific factors that are set out in the Corporate Tax Law. If a Person does not satisfy the conditions for being either a Resident or a Non-Resident person then they will not be a Taxable Person and will not therefore be subject to Corporate Tax.
Companies and other non-natural persons that are incorporated or otherwise formed or recognised under the laws of the UAE will automatically be considered as Resident Persons.
This covers non-natural persons incorporated in the UAE under either mainland or the applicable Free Zone legislation.
In addition, foreign companies and other foreign non-natural persons may also be treated as Resident Persons. Generally, this will be where they are effectively managed and controlled in the UAE.
Natural persons will be subject to Corporate Tax as a “Resident Person” on income from both domestic and foreign sources. However, this will only be in respect of income derived from a business activity conducted in the UAE.
Generally, Non-Resident Persons are non-natural persons who are not Resident Persons and have a Permanent Establishment in the UAE.
They will be subject to corporate tax on taxable income that is attributable to their Permanent Establishment.
A special 0% Withholding Tax will apply to certain UAE source income arising to a Non-Resident Person.
The new legislation also sets out exemptions in relation to certain types of income.
The stated aim of the exemptions is to eliminate the potential for double taxation on certain types of income.
As a result, dividends and capital gains earned from domestic and foreign shareholdings will largely be exempt from Corporate Tax.
In addition, a Resident Person can also elect in certain circumstance to not take into account income from a foreign Permanent Establishment for UAE Corporate Tax purposes.
The headline rate of corporate tax is 9%.
This applies to Taxable Income exceeding AED 375,000. Below this threshold, the rate of tax is 0%
| Threshold | Rate of tax |
| 0 – AED 375,000 | 0% |
| > AED 375,000 | 9% |
| Type of income | Rate of tax |
| Qualifying income | 0% |
| Non-Qualifying income | 9% |
A special 0% withholding tax applies to certain types of UAE sourced income that is received by non-residents.
There is no need for UAE businesses or foreign recipients of UAE sourced income to register for the withholding tax or to undertake other filing obligations.
Withholding tax does not apply to transactions between UAE resident persons.
A special rate of 0% applies to Free Zone Persons that are both:
In such circumstances, the Free Zone Person will pay 0% on their Qualifying Income.
In order to be a QFP, a Free Zone Person must:
Where a Free Zone Person does not satisfy these requirements, then the standard rates apply.
Qualifying Free Zone entities that are part of a large multinational group are anticipated to be subject to a different CT rate once the Pillar Two rules are embedded into the UAE CT regime.
As per Article 18 of the legislation, “Qualifying Income” is defined as that specified in a decision issued by the Cabinet at the suggestion of the Minister.
All Taxable Persons are required to register for Corporate Tax and to obtain a Corporate Tax Registration Number. This includes Free Zone Persons.
Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period.
The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.
If you have any queries about the UAE corporate tax or UAE tax matters more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
Last week, the Czech Republic’s Senate approved a proposed amendment in respect of a Windfall Profits Tax (WFT).
The WFT is based on the related Regulation of the Council of the European Union. However, the Czech Republic’s version differs from the European legislation in some key areas.
Significantly, for the period in which the measure is engaged, it will introduce a 60% tax rate on ‘extraordinary profits’ as opposed to the 33% rate recommended by the EU.
For those that meet the relevant conditions, this new 60% rate will apply for the period 2023 to 2025. This is on top of the standard corporate income tax (CIT) which is currently 19%.
Extraordinary profits would be defined as the general income tax base exceeding the average of tax bases or tax losses for taxable periods beginning and ending between 1 January 2018 and 31 December 2021, plus 20%.
This tax base would be subject to the 60% additional rate.
The taxpayer will likely to be within the corporate income tax and generating income within the windfall profits tax of at least CZK 50 million in a taxable period falling at least partially within the “windfall profits tax application period” from 2023-2025.
There are three categories of taxpayers subject to the windfall profits tax.
We will look at each, in turn, below.
Firstly, taxpayers who have income from the ‘relevant activities’ that include:
This is provided that the income qualifying for WFT from these activities for the first accounting period ending on or after 1 January 2021 accounted for at least 25% of their annual total net turnover.
Taxpayers generating income from the following activities:
In the windfall profits tax application period the taxpayer is part of a corporate group. Here, they will be within its scope where the sum of the relevant income of all taxpayers within the group for the first accounting period ending on or after 1 January 2021 of at least CZK 2 billion.
Alternatively, an entity records income qualifying for the windfall profits tax of at least CZK 2 billion for the first accounting period ending on or after 1 January 2021
The income qualifying for the Windfall Profits Tax is net interest income.
Where net interest income for the first accounting period ending on or after 1 January 2021 exceeds CZK 6 billion while meeting the general precondition of having generated net interest income for the relevant taxable period of at least CZK 50 million, then they are within the scope of WFT.
The first payments of WFT should be made in the latter half of 2023. These payments will be based on the estimated tax reported for the last taxable period ending before 1 January 2023.
This report must include information they would have recorded in their windfall profits tax return and use this information to determine what payments are required.
The report should be submitted by 3 July 2023 at the latest.
If you have any queries about the Czech Windfall Profits Tax or Czech tax matters more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article
Ireland’s Minister for Finance recently formally launched the Digital Games Tax Credit.
The measure was originally provided for in Finance Act 2021 subject to commencement order and, importantly, EU State Aid approval.
The European Commission has now provided that approval and a commencement order has now been passed.
It is expected that qualifying certificate holders are able to avail themselves of the relief from 1 January 2023.
The credit takes the form of a refundable corporation tax credit in respect of qualifying expenditure on:
The Digital Games Credit is available to digital gaming development companies that are
The rate of the credit is 32% of eligible expenditure. This is capped at a limit of €25m per project. A minimum project spend of €100,000 also applies.
There are a number of requirements that must be satisfied in order to qualify for the credit, including:
The game must be one which integrates digital technology, can be published on an electronic medium, is interactive/built on an interactive software and incorporates as least three of the following elements:
The digital game should not be produced solely / mainly as part of a promotional campaign or be used as advertising for a specific product.
Further, the game must not be produced solely or mainly as a game of skill or chance for a prize comprising money or money’s worth.
There is a requirement for expenditure to be incurred directly by the digital games development company on the design, production and testing of a digital game.
The categories of expenditure that may qualify for relief include:
A company must obtain certification from the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media.
When deciding whether it will grant such a certificate then the Minister will have regard to a matrix of cultural requirements. A points system is applied in assessing the merits of the application.
Under the rules, there is a provision for the issuing of:
Where a company has been issued with an interim certificate then the credit can be claimed within twelve months following the end of the accounting period in which the expenditure was incurred.
Alternatively, where a company has been issued with a final certificate, the company may make a final claim after deducting any amounts that have already been received under an interim certificate.
The Digital Games Credit is first offset against any corporation tax liability company for the relevant accounting period.
However, where there is no corporation tax liability or if the credit takes the company into a loss-making position, then the Company may make a claim for a cash refund.
If you have any queries about the Digital Games Credit or Irish tax matters more generally, then please do not hesitate to get in touch.
The content of this article is provided for educational and information purposes only. It is not intended, and should not be construed, as tax or legal advice. We recommend you seek formal tax and legal advice before taking, or refraining from, any action based on the contents of this article