Ireland: EU medical devices regulations and R&D tax credits
EU medical devices regulations may qualify for research and development tax credits
EU medical devices regulations may qualify for research and development tax credits
Companies undertaking development activities required to address the EU medical devices regulations may qualify for research and development (R&D) tax credits.
Due to the EU medical devices regulations, many manufacturers have had to undertake significant development work to investigate alternative materials for existing products, and subsequently integrate them into the product designs and manufacturing processes.
Under the R&D tax credit legislation, qualifying R&D activities are defined as those which are systematic, investigative or experimental, seek to achieve new knowledge, and involve the resolution of technological challenges. These activities can include the improvement of existing products, processes or services, as well as devising new ones. R&D as defined in tax legislation is not just the domain of academics and related scientific advancements, but also technological advancements (i.e., advancements based on the practical implementation of scientific principles).
Activities which could qualify for the R&D tax credit may include the following:
- Material substitution
- Device redesign
- Process development
- New test methods
Read an April 2023 report prepared by the KPMG member firm in Ireland that discusses these changes in detail
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