NZ launches R&D tax incentive legislation - What’s in it for you?

From April 2019, your business could be eligible for a tax incentive based on R&D expenditure. The New Zealand Government launched the inventive program to boost (R&D) expenditure to 2% of GDP over 10 years.

Under the scheme there will be a number of criteria and compliance obligations to meet.

Here are the main features of the R&D tax incentive:

1. A credit rate of 15%
   
   
2. A $120 million cap on eligible expenditure
   
   
3. A minimum R&D expenditure threshold of $50,000 per year
   
   
4. A limited form of refunds for the first year of the scheme that will mirror the R&D tax-loss cash-out scheme run by Inland Revenue. A more comprehensive policy will be in place for the second year of the scheme
   
   
5. A definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector
   
   
6. The inclusion of state-owned enterprises, industry research cooperatives, levy bodies, and minority-owned subsidiaries of select Crown entities.

Talk to us about what you need to do to take advantage of this incentive. And, if you are eligible we can help in the application process.

Call us today on 03 474 0475 to speak to one of our tax specialists.