Intel gets $5m tax pass from Irish R&D
The Irish-based Research and Development (R&D) arm of chip giant Intel made more money from R&D tax credits totalling $5.9m than it did in pre-tax profits from its operations here last year.
New accounts filed by the Shannon-based Intel Research and Development Ireland (IRDI) Ltd show that last year the firm would have been liable to pay Irish corporation tax of $480,242 based on its pre-tax profits of $3.84m.
However, the firm had no corporation tax bill last year and instead received a tax credit of $5.3m as a result of the R&D tax credit of $5.9m.
The R&D tax credit last year followed a tax credit of $5.7m under the same heading in 2013.
According to figures from Revenue, R&D tax credits cost the exchequer €421m in 2013.
The $5.36m received in net tax credits was almost $2m more than the IRDI's pre-tax profits of $3.84m in 2014. As a result of the R&D tax credit last year, the firm more than doubled its pre-tax profit of $3.59m to a profit of $9.2m.
Researchers at Intel's 'Irish Design Centre' in Shannon are engaged in developing the most advanced silicon technology on the planet and the accounts show that the firm continued to expand last year with revenues increasing by 12pc, from $53.5m to $59.85m.
Staff at the firm are well rewarded for their work with average pay, including pensions and share-based payments charge, totalling over $105,000 each on average for the year.
The accounts show that the firm continued to expand with numbers employed going from 216 to 254 with staff costs made up of salaries of $21.29m; share- based payments of $2.6m and pension costs of $2.79m.
The figures show that 204 of the 254 staff at the firm are engaged in R&D with 50 in management and administration including sales and marketing.
R&D personnel at Intel's Shannon base are dealing with nanometres which is a billionth of a metre and this gives 3,000 electrical devices on the width of a human hair.
The accounts show that director, Jonathan Walsh - who started the firm in Shannon - resigned from the board in September of last year.
In a previous interview recalling the history of the firm, Mr Walsh said that the Shannon operation started out in 2000 in a little incubator unit "with no phone, no furniture and no computers and we had no borrow three white plastic patio chairs for our first meeting" before the startup company was later acquired by Intel.
The company has $51.59m in shareholder funds.
The profit last year takes account of $2.7m in non-cash depreciation with directors' remuneration increasing to $401,418.