What are the steps involved to claim?
What do I need to do?
To claim the RDTI you must:
R&D Tax Incentive
R&D Loan Scheme
Getting Started Grants
R&D loss tax credit
1. Enrol with Inland Revenue in myIR
2. Keep appropriate records of your eligible R&D activity and expenditure as set out in the record-keeping section
3. Make a judgement (self-assessment) that your business is an eligible entity with eligible R&D activity and eligible expenditure
4. Complete an R&D supplementary return
5. File your income tax return, making sure you complete the R&D tax credit field.
You must also meet the deadlines for filing your R&D supplementary return and your income tax return as outlined below.
If you intend to claim the RDTI, the first step is to enrol in myIR on Inland Revenue’s website. In your myIR account, you’ll find the I want to tab and RDTI enrolment. You’ll need to provide some basic information about your business, and contact details.
Enrolling doesn't commit you to making a claim, it merely enables it. Once enrolled you'll have access to the R&D supplementary return and - from the 2020/2021 income year - the application form for general approval.
Before you complete a supplementary return and file your tax return, you must make a judgement that you meet the various RDTI claim requirements. The information provided on this website and in Inland Revenue's detailed RDTI guide will help you make this assessment. For more assistance see ‘Where do I go for help?’.
R&D supplementary return in the 2019/2020 income year
The R&D supplementary return requires some information about your business, for example, if you are conducting the R&D as part of a partnership or joint venture, as well as information about your eligible R&D activities and expenditure.
In the 2019/2020 income year, the R&D return will ask for the following information about your R&D activities:
- The project name or names if you have more than one project
- For each project, what new or improved thing are you trying to create?
- What scientific or technological uncertainty or uncertainties are you trying to resolve?
- What systematic activities did you undertake to test possible solutions to the uncertainty or uncertainties? This might be a process of experimentation, testing or prototyping etc.
- Information about any activities which, although they are not testing possible solutions to a scientific or technological uncertainty, are directly related to those activities and meet the tests to be a supporting R&D activity.
You’ll be asked for a breakdown of your expenditure and depreciation loss on eligible R&D activities. In the supplementary return you’ll be asked for this information aggregated at the project level but you will be expected to have records that show your claimed expenditure for each claimed core or supporting activity.
In addition, you will be asked whether any of the expenditure in your claim relates to R&D conducted in a context where additional rules apply, for example overseas R&D, or R&D in a production environment.
Finally, there are questions intended to help the Government evaluate the success of the RDTI scheme. The R&D return must be filed electronically through myIR within 30 days after your income tax return due date.
Changed process in 2020/2021: general approval
From the 2020/2021 income year, most businesses will need to get their R&D activities approved before they can claim the RDTI. This is known as obtaining general approval. The general approval process will provide you with certainty that your activities are eligible, and reduce the work needed for the R&D supplementary return. Details can be found in the full Introductory Guide - which can be downloaded below.