Ireland: Changes to R&D tax credit, knowledge development box and digital games tax credit in Finance Act 2022

Changes introduced by the Finance Act 2022

R&D tax credit, knowledge development box and digital games tax credit

Finance Act 2022 introduced structural changes to the research and development (R&D) tax credit, as well as changes to the knowledge development box (KDB) and the digital games tax credit, aimed at aligning the measures with international tax reform.

  • The changes to the R&D tax credit focus on how companies can claim the benefit of the R&D tax credit.
  • The KDB regime was extended for four years, to include accounting periods commencing before 1 January 2027, but amendments were made to increase the effective tax rate on KDB profits to 10% (from the current 6.25%).
  • Amendments to the digital games tax credit were made to confirm compliance with EU State aid requirements and correct certain technical points. 

Read an April 2023 report prepared by the KPMG member firm in Ireland that discusses these changes in detail



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