Leyton’s 2011 Budget Recommendations

18/11/2010

Leyton’s 2011 Budget Recommendations

As 2010 draws to a close, there is no doubting the seriousness of the economic difficulties that our country is faced with. The issues are well documented. Every day we hear more and more about the debt crisis, the fiscal deficit and the bailouts; the news is rarely good. It is within this context that the Government is putting the finishing touches to its 2011 Budget which will be announced by the Minister of Finance, Brian Lenihan, on December 7th.

The Government has stated that their top priority is bringing stability to the Irish economy and creating an environment for sustainable growth for the future. In making the cuts and savings needed to achieve this objective, the Government has made it clear that no area is off limits. This is an understandable position given the gravity of the economic situation the country finds itself in.

The R&D Tax Credit has played a major part in attracting R&D investment into Ireland and in encouraging indigenous Irish companies to engage in innovative and high-end R&D activities. Other countries are constantly updating, revising, and enhancing their R&D tax reliefs in order to make them more appealing to claimant companies. It is critical, now more than ever, that Ireland does not get left behind in terms of its R&D tax relief offering.

Leyton have already submitted their recommendations to the Department of Finance for the 2011 Budget which highlighted six changes that would be instrumental in ensuring Ireland retains its position as a location of choice for R&D companies.

1- Increase in R&D Tax Credit from 25% to 30%
2- Change from an incremental to a volume based tax credit – remove the base year
3- Ensure R&D Tax Credit can be taken “above the line”
4- Attract key R&D personnel
5- Increase/remove outsourcing cap
6- Enhance the cash refunds of the R&D Tax Credit.

Please click here to download and read Leyton’s full 2011 Budget Submission

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