Research and Development Tax Incentive: Who Qualifies and What You Get
Learn how businesses in New Zealand can claim a tax credit for their research and development spending to help fund innovation.
This scheme provides a tax credit to businesses that invest in research and development within New Zealand. It is designed to support innovation by reducing the financial burden of technical experimentation.
Who it's for
This incentive is specifically for businesses that are actively performing research and development activities within New Zealand. If your business is conducting work aimed at creating new knowledge or developing new products and processes on the ground here, you may be eligible.
What you get
The benefit is a tax credit calculated at 15% of your eligible research and development expenditure. This credit is intended to provide a financial return on the money your company spends while pursuing innovation and technical advancement.
What it costs you
There is no upfront fee to access this scheme, but it does require a significant investment of time and administration. To qualify, you must manage detailed record-keeping to prove your activities meet the requirements. You will also need to complete and submit an application on an annual basis to maintain your eligibility.
The catch to know
The most common difficulty for applicants is the complexity of the rules regarding what counts as "eligible R&D." Because the definition of research and development can be technical, there is often debate over whether specific business activities meet the required criteria for the tax credit.
How to apply
- Review your company's technical activities to see if they meet the requirements for research and development.
- Implement a system for detailed record-keeping to track all eligible expenditures and activities.
- Prepare your documentation to support your claims for the specific period.
- Complete the application process through the official government portal.