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News & Insights

Could investing in R&D help your business grow? Here you’ll find the latest R&D insights, RDTI guidance updates, and news about RDTI legislative developments.

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Transition Support Payment update

April 2022

Here’s some updated information and clarification about the Transition Support Payment.

This payment is designed to help former Growth Grant recipients maintain investment in R&D while moving to the Research & Development Tax Incentive (RDTI).

It can bring total R&D support to a similar level as the Growth Grant, provided a similar level of R&D is maintained.

Clarifying the “good faith RDTI attempt”
When you apply for the Transition Support Payment, you are asked to provide a Directors’ Attestation that:

  • you have accurately assessed your Growth Grant eligible R&D expenditure, and
  • made a good faith attempt to participate in the RDTI.

“Good faith RDTI attempt” means you have included on your RDTI application all R&D activities that you reasonably consider to be eligible for the RDTI. Any eligible activities omitted from your RDTI application, therefore, cannot be included in your Growth Grant R&D expenditure calculation. If this affects your intention to apply for the transition support payment, please contact us at RDTIHelp@callaghaninnovation.govt.nz.

Accounting treatment
The accounting treatment applied to expenditure used to calculate the Transition Support Payment must be the same as that applied to expenditure claimed under the RDTI.For example, if you have capitalised certain costs under the RDTI in a given financial year, they cannot be included in your calculation of your notional Growth Grant R&D expenditure for that financial year.

Grouping rules
If you previously claimed the Growth Grant for a group of companies, only those companies in the group that also claimed the RDTI are eligible for the Transition Support Payment. Questions in the Transition Support Payment application will help you identify whether any companies need to be excluded - see “How to apply” below for details on how to access the application form.

Updated Directors’ Attestation
Please note that the Directors’ Attestation form was updated in March 2022 to include reference to the good faith attempt and grouping rules outlined above. You can view an example of the updated form here.

How to apply for the Transition Support Payment
Applications can be made via Callaghan Innovation’s online IMS portal. Depending on your situation, you may be eligible for payment:

  • for some or all of the 2019/20, 2020/21 and 2021/22 income years
  • whether or not your RDTI application is successful.

When you log into IMS, it will automatically identify which income year/s you are eligible for, and give you access to the relevant application form/s, as they become available.

Note that before applying, you must have received your “R&D Tax Incentive: Transition Support Payment” letter from Inland Revenue. This will be sent to you:

  • after your Supplementary Return has been finalised, if your RDTI application was successful, or
  • after you receive your RDTI application decision, if your application was declined.

Application deadlines are:

  • 30 June 2022 for the 2019/20 income year
  • 31 October 2022 for the 2020/21 income year
  • 24 April 2024 for the 2021/22 income year.

We’re here to help
If you have any questions about the transition support payment, we’re here to help! Please contact us at RDTIHelp@callaghaninnovation.govt.nz and we will get back to you promptly.

You can also check out the relevant pages on the RDTI hub website: transition support payments.

COVID-19 related due date extensions

March 2022

Inland Revenue has announced extensions to the due dates for submitting some RDTI applications and supplementary returns.

These extensions apply if you have a particular end of income year/balance date AND you have been materially delayed or disrupted by the COVID-19 outbreak and its effects.

Our claims date finder has been updated to show which balance dates the extensions apply to. There is also an overview of the changes below.

The changes reflect variations to sections 33E, 68CB(2) and 68CC(3) of the Tax Administration Act 1994 - see details here.

Please note that if a due date falls on a weekend or public holiday you may file on the next business day.

RDTI Supplementary Returns
Due date
New CV-19 due date
RDTI supplementary returns for 2020/2021 income year
Normally due 30 April 2022
31 May 2022
RDTI Applications
Balance dates
New CV-19 due date
General approval applications for 2021/2022 income year
31 December 2021
7 April 2022
General approval applications for 2021/2022 income year
31 January 2022
7 May 2022
General approval applications for 2021/2022 income year
28 February 2022
31 May 2022
General approval applications for 2021/2022 income year
31 March 2022
31 May 2022
Criteria & Methodology applications for 2021/ 2022 income year
31 August 2022
30 April 2022
Criteria & Methodology applications for 2021/ 2022 income year
30 September 2022
31 May 2022
Criteria & Methodology applications for 2022/ 2023 income year
31 October 2022
31 May 2022

Guidelines for digital technology sector available now

March 2022

Inland Revenue has published guidelines for the digital technology sector that provide clarity on what R&D performed within the sector is included in the RDTI scheme.

The guidelines, on the Inland Revenue website, can be viewed and downloaded here.

Callaghan Innovation and Inland Revenue worked closely with the digital technology sector to develop the guidelines, which aim to help businesses:

  • understand the RDTI legislation’s intent
  • identify which elements within a broader commercial project or activities may be eligible for the RDTI
  • see how the RDTI can apply to digital technology related R&D projects
  • help you focus on what key information is needed in your RDTI application.

If you want to discuss whether your particular digital technology related R&D could be supported by the RDTI, or you have general questions about the scheme, Callaghan Innovation has Customer Engagement Specialists ready to help.

They can meet with you to help you develop your General Approval application, and can also review your draft application before you submit it for assessment. To contact them, email: RDTIHelp@callaghaninnovation.govt.nz

Other sector-specific guidelines are planned, to give more New Zealand businesses clarity on how their R&D could be supported by the RDTI.

RDTI Portal temporary closure

October 2021

Services in Inland Revenue’s myIR portal, including the RDTI Portal, will be temporarily unavailable from 3pm, Thursday 21 October and are expected to reopen on the morning of Thursday 28 October.

During this time, Inland Revenue will be making significant improvements to its systems and should have been in contact with anyone that has live applications.

Information and resources on the RDTI Hub will still be accessible.

Please see IR’s website for further information.

Minister agrees to extend RDTI application due dates

June 2021

On 1 April 2021, refreshed guidance was published which clarifies eligible R&D activity expenditure for the R&D Tax Incentive (RDTI). The refreshed guidance is available on the Inland Revenue site Research and development tax incentive (ird.govt.nz).

The Minister of Revenue has agreed to extend due dates for years one and two (2019-20 and 2020-21) of the RDTI to give businesses more time to consider how the RDTI eligibility criteria applies to their activities and to make an application. The Minister will include a due date extension to 31 August in the next tax Bill for:

  • year one (2019-20 income year) supplementary returns to 31 August 2021; and
  • year two (2020-21 income year) general approvals and criteria and methodologies (CAM) approvals.

Next steps

Amendments to give effect to these extensions will be included in the next tax Bill due to be introduced to Parliament in the second half of 2021. Businesses wanting to apply for the RDTI are encouraged to go to the “How to claim” section of the RDTI Hub or to contact Callaghan Innovation's RDTI specialists.

Late balance date payers, and COVID-19 extension due dates

If a taxpayer has a late balance date which results in their due date being later than 31 August 2021 then this later due date remains.

Where eligible, businesses can make use of the COVID-19 variation determination issued on 1 April 2021 which extends the due date for year one supplementary returns and year two CAMs. More information is available on Inland Revenue’s website Variation to sections 33E and 68CC(3) of the Tax Administration Act 1994 (ird.govt.nz).

Special rule for Growth Grant recipients with late balance dates in the 2020/2021 income year

2020

Generally, if you receive a Callaghan Innovation Growth Grant for the whole, or a part, of the 2020/2021 year, you cannot claim the RDTI for that income year. The exclusion also applies where you are directly or indirectly controlled by or associated with a person receiving a Growth Grant. If the exclusion applies, it applies even to R&D activity and expenditure for which you have not received a Growth Grant. However, the exclusion may not apply for the entire 2020/2021 income year if you satisfy both the following:

  • Your income year started after 1 April 2020 (you have a late balance date).
  • You receive a Growth Grant for a part of the 2020-21 income year.

If both statements apply, you may be eligible to claim your eligible R&D expenditure for the part of the income year after your Growth Grant contract ends. Find out how to apportion your eligible R&D expenditure for the RDTI on page 64 of IR’s detailed guidance.

Filing date change for RDTI general approval applications

September 2020

If you are filing a general approval application relating to the R&D Tax Incentive (RDTI) for the 2020/2021 income tax year, you can now have more time to apply – until the 7th day of the fifth month after the end of the first income year.

The change is for a situation where you could not apply on time because the COVID-19 outbreak and its effects disrupted any of the following:

  • Planning or doing eligible research and development
  • Appropriately obtaining necessary information
  • Getting advice

The change is effective from 1 September 2020 to 30 September 2021.

Return due dates
Please note that this extension does not apply to your income tax and supplementary return due dates.
To talk about the options if you need more time to file your income tax and supplementary return, email the r&dtiteam@ird.govt.nz.
Variation to section 68CB(2) of the Tax Administration Act 1994

New RDTI webinar released

May 2020

IR has released a how-to webinar to assist people completing the R&D supplementary return.

Broader RDTI refundability rules announced

March 2020

The Government has passed changes to the R&D Tax Incentive (RDTI) rules under urgency to provide extra cash support to R&D-performing businesses, to help support them through the disruption caused by COVID-19. A new RDTI refundability fact sheet is now available.

Read More

New R&D Tax Incentive online hub launched

February 2020

The new R&D Tax Incentive (RDTI) Hub website provides RDTI updates, easy-to-follow RDTI “How-To” guides, inspiring R&D stories and news.

R&D Tax Incentive set to boost business R&D spend in New Zealand

January 2020

The R&D Tax Incentive (RDTI) is the Government’s billion-dollar flagship programme to encourage more businesses to invest in R&D.

Why is R&D investment so important for New Zealand’s economy? How does the RDTI benefit businesses that are doing R&D? Megan Woods (Minister of Research, Science and Innovation) and Revenue Minister Stuart Nash outline the rationale behind the RDTI initiative.

They also discuss their plans to introduce a comprehensive form of refundable tax credits in 2020/2021 to benefit more startups and loss-making businesses.

Read More

Risk versus reward: the business case for investing in R&D

December 2019

New Zealand businesses are not investing as much time and resource in research and development (R&D) as other countries.

Why? The reason seems to be that many Kiwi companies fear the risk of undertaking R&D.

Callaghan Innovation’s CEO Vic Crone outlines the significant long-term benefits of R&D investment and why it’s time more New Zealand businesses re-evaluate their commitment to R&D spending.

Read More

Introducing the R&D Tax Incentive

October 2019

Hear CEOs from Biotelliga, 1Centre, Methven and Fraser Engineering talk about the importance of R&D and its contribution to their ongoing business growth. The RDTI aims to help R&D-focussed businesses commit more time and resource to their R&D endeavours.

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