The Investment Aid Tax Credits 2014 – 2020 scheme has been extended to include with its list of eligible activities also enterprises engaged in the operation of hotels, resort hotels, suites/ apartment hotels and guesthouses.
Enterprises performing investment in relation to the establishment of a new hotel or a project in relation to extensions to existing hotels can benefit from a tax credit based on the eligible investment. Costs in relation to refurbishment projects on the hotel are not considered as eligible expenditure and hence should not qualify for tax credits under this scheme. Tax credits awarded under this scheme may be claimed against tax due by the company on profit generated from the operation of the hotel and any unutilised tax credits may be carried forward indefinitely.
Enterprises engaged in the operation of hotels are eligible for tax credits at the rate of 15% of the eligible expenditure or, at the rate of 10% if the investment project commences after 31st December 2017 and the enterprise conducting the project is considered as a ‘large’ enterprise* .
* - A large enterprise is one which employs, or is part of a group which employs, more than 250 employees and has turnover exceeding €50 million.