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In today’s challenging economy, investment in research and development (R&D) is vital. R&D creates new knowledge, new or improved processes, services and goods, and skilled jobs for more New Zealanders.
The R&D Tax Incentive (RDTI) helps make R&D possible. It allows qualifying businesses to claim a 15% tax credit on their eligible research and development (R&D) costs, reducing the income tax they need to pay. Loss-making businesses can apply to have this tax credit refunded or carried forward.
There are ways for businesses to access the RDTI even if their R&D investment is small (less than $50,000 pa), or even if the outcomes of their R&D are not successful.
R&D is about discovering the unknown. It seeks to resolve scientific or technological uncertainty and, in doing so, it can give your business a competitive edge.
To qualify for the RDTI, your R&D must occur in New Zealand and follow a systematic approach. It needs to address an uncertainty that a competent professional in the relevant field cannot resolve without undertaking a systematic course of investigation. Also, the knowledge required to resolve your uncertainty cannot be publicly available.
If now is the time to reset or revitalise your R&D programme, you’ve come to the right place.
The RDTI is a tax credit, so it must be claimed through Inland Revenue in your income tax return. The process will be linked to your myIR account, so that it is easy to find and manage in one place.
Learn how to claim the RDTISee our claims date finder
