Government has announced its intention to introduce a research and development tax incentive in April 2019 to help more businesses undertake a greater amount of R&D on 19th April 2018.
The Ministry of Business, Innovation and Employment, Inland Revenue and Callaghan Innovation have designed an R&D tax incentive proposal and are seeking input into the design process through the R&D tax incentive discussion document. The key feature of the government’s instrument for providing an R&D tax incentive is a tax credit of 12.5% on eligible expenditure to businesses doing R&D in New Zealand, which could be claimed on up to NZD 120 million of R&D expenditure each year (NZD 15 million credit each year, based on a 12.5% rate
After the consultation period closes, Ministry of Business, Innovation and Employment, Inland Revenue, the Treasury and Callaghan Innovation will provide to the government policy options, which will take into account the submissions for inclusion in legislation to implement the tax incentive.
Both the R&D tax incentive discussion document and the growth grant transition consultation document outlining the main features of both proposal are available for download and submissions are open until 1st June 2018.
For more details, visit the MBIE website. Which also explains how to make a submission.
