R&D Tax Incentives
The government has announced its R&D Tax Incentive package. It aims to raise New Zealand’s research and development expenditure to 2% of GDP over 10 years.
To reach its target the government needs businesses to increase their expenditure on R&D and to encourage this they will be supported through the R&D tax incentive.
The key features of the R&D tax incentive include:
- A credit rate of 15%
- A minimum R&D expenditure threshold of $50,000 per year
- A limited form of refunds for the first year of the scheme, with a full policy in place by April 2020
- A $120 million cap on eligible expenditure
- A definition of R&D that ensures accessibility across all sectors
The 15% tax credit will be available from the beginning of your 2019/20 income year.