Research & development

R&D isn’t solely practiced by scientists in laboratories, and it isn’t just limited to the creation or enhancement of products and services. In fact, a lot of organisations can carry out R&D activity without even knowing it. 

Some of the lesser-known benefits of New Zealand’s R&D tax incentive scheme include software development, intellectual property costs, wages for team members involved in R&D activities, and even failed projects can sometimes qualify for funding.  

If your business is investing at least $50,000 a year in R&D and meets Inland Revenue’s eligibility criteria, you could be entitled to a 15% tax credit (which can be paid out in cash, generally in a loss making scenario), for up to $120 million in R&D expenditure. 

Avoid a time consuming and expensive application process 

The key to successful applications is planning early and clear documentation that captures the right data so you capitalise on the support available to you. The application process can be challenging, time-consuming and expensive if you are not aware of the requirements. As part of making an R&D tax credit claim, our tax specialists can assist you with:

• identifying core and supporting R&D activities 
• identifying eligible and ineligible expenditure within core and supporting activities 
• confirming that your entity is eligible to claim R&D tax credits 
• complying with record keeping requirements 
• applications for pre-approval with Inland Revenue 
• calculation of available R&D tax credits 
• preparing your supplementary return.