New RDTI guidance released on ‘Eligible R&D Activity’. Read more

Why do R&D?

R&D allows businesses to explore new ways to create competitive advantage - and can produce a range of results including new systems and processes, or innovations in products and technology.

For the purposes of the RDTI, there is a specific statutory definition of ‘R&D’ which is not the same as the commercial, engineering or accounting definitions. The tax credit is not just for scientific research but also for development activity that meets the eligibility criteria.

There are clear criteria around what does and doesn’t qualify as eligible R&D for claiming the RDTI and these should be considered in detail before launching a project.


SCROLL

Why do R&D?

There are compelling reasons for businesses to consider doing more R&D:

  • R&D is a good investment. A 2017 review of economic studies around the world found the long-term payback on R&D spend is in the order of 20% a year.
  • New Zealand Productivity Commission research (2017) showed firms that adopt an ‘all-of-firm innovation mindset’ and focus on continually improving their internal processes and structures while also innovating through R&D, get exponentially better productivity outcomes than those that innovate in just one area.
  • While there is no guaranteed return on investment (ROI) for a business that spends money on R&D, the RDTI can now help eligible businesses to mitigate some of this risk by reducing their income tax bill.

A business case for investing in R&D can be found in our News and Insights section. It provides further evidence that R&D creates opportunities for your business to gain a competitive advantage, helping it grow.

Government funding for research & development (R&D)Government funding for research & development (R&D)

R&D Tax Incentive

How can I get help with the costs of my R&D programme?

Getting Started Grants

Is there funding for my business to start doing R&D?

Project Grant

Is there funding to help my business expand its R&D?

R&D loss tax credit

Can my R&D tax losses be refunded?

Student Grants

Is there funding to get short-term, skilled staff for my R&D project?
How can I access funded expertise to help with a challenging research project?
I want to add a highly skilled graduate to my R&D team, is there funding to assist?
a credit rate of 15%a $120 million expenditure capa minimum R&D expenditure of $50k per year (or less with an approved research provider)
Occur in New ZealandSeek to resolve scientific or technological uncertaintyFollow a systematic approachSeek to create new knowledge, or new or improved processes, services or goods
1. enrol with Inland Revenue on 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.1. enrol with Inland Revenue on 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.
Subscribe to keep up to date with the latest RDTI news and events.
Subscribe

Subscribe Now

Join our R&D community and be notified about the latest RDTI developments and R&D news.