Budget 2027 announcements. Implementation dates vary. · By K Imports

Budget 2027: R&D tax credit and Knowledge Development Box

€105,000 first-year payment, higher subcontracting limits, wage-cost uplift and KDB extension.

Sources checked 2026-10-07.

Who it affects and when

Audience: Companies undertaking qualifying scientific or technological R&D.

Timing: Budget 2027 legislative changes; clinical-trial detail is proposed for Finance Bill Committee Stage.

Cash flow: The first-year R&D payment threshold rises from €87,500 to €105,000. Changes also improve recognition of R&D credit for preliminary corporation-tax purposes.
Subcontracting: The existing caps for higher-education institutions and unconnected third parties increase from 15% and €100,000 to 20% and €200,000, subject to the regime's in-house expenditure conditions.
Wages and trials: A new provision permits a 5% qualifying R&D wage-cost uplift to the cost base, subject to sufficient expenditure. Regulated clinical trials are proposed to satisfy the science test, with technical drafting continuing.
KDB: Knowledge Development Box relief extends to 1 January 2032, with a time-limited option for existing claimant companies to elect out under specified conditions.

Document the actual scientific or technological uncertainty and qualifying expenditure.
Distinguish a cost-base uplift from a five-percentage-point increase in the tax-credit rate.
Check commencement, subcontracting limits and the KDB opt-out conditions in the final provisions.