Check if your research and development (R&D) activities from 2019/20 are eligible for a 15% tax credit and enrol now.
The R&D Tax Incentive is a 15% tax credit on up to $120 million of eligible expenditure. It is available from the 2019/20 income year.
To claim this credit, your business must spend more than $50,000 on eligible R&D in a tax year, unless you use an approved research provider. This exception helps make the R&D tax credit available to businesses of all sizes.
If you’re doing R&D activities and plan to claim the tax incentive, you’ll need to enrol before you can submit a supplementary return at the end of the tax year. Enrolment takes about 10-20 minutes.
You can enrol for the tax incentive with Inland Revenue through your myIR account. Choose the I want to tab and RDTI enrolment. You'll need to answer a few questions.
Once enrolled, you'll have access to the R&D tax incentive workspace where you'll be able to enter information from November 2019.
myIR secure online services (external link) — Inland Revenue
Businesses that want to apply for the R&D Tax Incentive need to be enrolled before they can file a supplementary return at the end of their tax year. This is particularly important for R&D customers who have an early balance date.
If you’re enrolled, you’ll be able to upload supporting documentation in myIR by preparing the R&D supplementary return. This will be available in mid-November for businesses that have an early balance date so they can file their end-of-year returns.
If you’re currently doing R&D, find out if your current R&D activities meet the tax incentive criteria. If you’re considering how you might do future R&D, understanding the eligibility criteria might help you make the right decisions.
Check out our recent article on eligibility. It includes examples of activities that are eligible as well as tips on breaking down your spend and keeping records.
You can also read answers to frequently asked questions about the R&D Tax Incentive. For more in-depth information, guidance material is also available.
R&D Tax Incentive frequently asked questions (external link) — Inland Revenue
Research and development tax incentive: Guidance (external link) — Inland Revenue