What requirements does my business need to meet to access the RDTI?
A business that meets the entity structure criteria must also meet the following requirements:
Carry on business in New Zealand
You must be engaged in a trade, profession or other undertaking in New Zealand with the intention of making a profit.
Have a fixed establishment in New Zealand
You must have a place of business in New Zealand in which substantial business is carried on, i.e. it’s not enough to just have facilities here for storage, information-gathering and advertising.
Ownership rights of R&D
Either you or one of the following must own or have the right to use the results of the R&D for no extra cost:
- another company in your corporate group that is also a tax resident of New Zealand
- your joint venture/partnership if you are in one.
Conduct core R&D activity in New Zealand
Although you can claim some R&D costs incurred overseas, you must be carrying out core R&D activity in New Zealand to be eligible for the RDTI.
Meet the minimum R&D investment threshold
To be eligible for the RDTI, you must invest at least $50k in eligible R&D in the income year that your application relates to.
This minimum investment threshold is waived if you contract an Approved Research Provider to conduct your R&D on your behalf. Find out more about Approved Research Providers.