The RDTI’s Significant Performer regime provides large research and development (R&D) performers with an alternative way of applying for approval of their RDTI claim.
Instead of applying for General Approval, businesses that are eligible to be recognised as Significant Performers have the option of applying for Criteria and Methodologies (CAM) approval.
A Criteria and Methodology (CAM) agreement enables businesses to use their own established systems and processes to assess the eligibility of their R&D activities and expenditure for the RDTI. This separate CAM process is available for the 2020/2021 year (Year 2) and future years.
The RDTI’s Significant Performer regime is suited to businesses that are undertaking a large number of core R&D activities. Electing to become a Significant Performer saves companies from having to seek General Approval for each of their R&D activities. This reduces their associated RDTI compliance and administrative costs while still giving them a degree of certainty around the eligibility of their R&D activities.
To qualify as a Significant Performer you must plan to spend at least NZD $2 million on eligible R&D activities in one income year, or in each of the years covered by your Criteria and Methodologies (CAM) approval.
Companies with large, established R&D functions may find it easier to integrate RDTI requirements into their existing processes for project management and financial reporting. These companies may also decide that the effort to gain and maintain CAM approval more than outweighs the effort required to submit multiple general approval applications. Companies need to be confident that they fully understand the RDTI Tax Legislation and have the systems to self-assess correctly.
The How-To Guide below will provide you with an understanding of:
If you require further guidance, please contact the RDTI Customer Engagement Team at email@example.com.