If you’re confident that your business and R&D may be eligible for the RDTI, click here if you're ready to prepare your application. If you’re unsure, read on to find out more.
Most businesses are eligible
Most businesses carrying out R&D in New Zealand will be eligible for the RDTI.
Depending on the legal structure of your business, there may be certain conditions you need to meet to be eligible. There are also requirements around where and how you conduct your business, where your R&D is carried out, how much you invest in R&D, and who has ownership rights of your R&D.
Most types of business operating in New Zealand are eligible for the RDTI, regardless of legal structure.
This includes dual applicants such as partnerships, joint ventures and look through companies, provided you meet certain conditions.
Organisations not eligible for the RDTI include:
- the following Crown-owned entities: CRIs, TEOs and DHBs, including associates of one of these organisations or if you're majority-owned or effectively controlled by one of these organisations or their associates
- certain entities that derive tax-exempt income
- R&D contractors - find out more about this below under ‘Using a contractor for your R&D’.
A business that meets the entity structure criteria must also meet the following requirements to access the RDTI:
- carry on business in New Zealand
- have a fixed establishment in New Zealand
- own or have the right to use the results of the R&D for no extra cost
- conduct core R&D activity in New Zealand
- meet the $50k minimum R&D investment threshold (unless you contract an Approved Research Provider to do your R&D for you).
Find out more about these requirements.
Some businesses may choose to engage a contractor to perform R&D on their behalf. Contractors themselves aren’t generally eligible for the RDTI, but you can claim amounts you spend on contractors to do R&D on your behalf.
Find out more about using a contractor for your R&D.
Need help deciding if your business is eligible?
If you’re not sure if your business is eligible, please get in touch with us. One of our Customer Engagement Specialists will be able to clarify this for you.