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Big Four call for Irish R&D tax credit overhaul: 35% rate and expanded third-party collaboration relief to remain competitive under Pillar Two

Published on: 27 August 2025

Published by a Law360 reporter
Legal News
Article summary

Big four urge Ireland to boost R&D tax credit system

Three of the firms—PwC, KPMG and EY—have urged Ireland to raise its R&D credit from the current 30% of a company’s outlay, with PwC and KPMG advocating a 35% rate. All four, including Deloitte, referenced the 15% global minimum tax, known as Pillar Two, in pressing the country’s Finance Department to revamp the R&D credit framework to keep Ireland competitive, including by widening credits available for third-party partnerships. Broadly, Pillar Two introduces cross-border top-up taxes intended to ensure multinational groups with revenue above €750m pay effective tax rates of at least 15% in every location where they operate. The proposals are presented as essential to keep pace with international shifts arising from Pillar Two...

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