What are listed research providers?
What is a listed research provider (LRP)?
An LRP is a research provider listed on our website, who has completed the listing process with us. They provide R&D services under contract to other businesses.
LRPs conduct research on behalf of unassociated businesses. A business who believes that their eligible R&D expenditure is likely to be less than $20,000 may qualify for the R&D tax credit if it uses an LRP to do this research.
The business contracting the services of an LRP retains control of the eligible R&D activities, bears the financial risk, and effectively owns any results of the R&D activities. This business may claim the R&D tax credit.
LRPs are not eligible to claim the R&D tax credit for work contracted by other businesses.
What is an LRP required to do?
To be eligible for listing, providers are required to meet the LRP criteria. We may perform checks to ensure LRPs continue to meet these criteria.
The following table describes the LRP criteria.
| Criteria | Further details |
|---|---|
| You must have the capability to perform contracted eligible R&D. |
The R&D services you provide must be systematic, investigative and experimental in order to be eligible R&D.
|
| You must have R&D facilities in New Zealand. |
Facilities:
|
| You must charge fees on commercial (arm's-length) terms. | Fees must be at an open-market rate. |
| You must be available to undertake work on behalf of multiple unrelated organisations. | To determine if the businesses are sufficiently unrelated, see sections YB 2, 5, 9-12, 16, 17 and 20 of the Income Tax Act 2007. |
|
You must maintain records to show:
|
Records may be used by:
|
What else do I need to know?
Your information
Some of the information you provide will be published online in the list of registered providers. Published details will include the provider name, website address and research services offered. You may also choose to have some other contact details included.
We take no responsibility for any use the public may make of this information, or any other unforeseen consequences of this information being available from our website.
Update LRP details
You may update your details (ie, contact details, research services) at any time by contacting us.
Review of LRP status
We may review LRPs at any time to ensure the LRP criteria are being met. Providers may be selected for review based on a random sample, industry review or third party information. Providers not meeting the criteria will be removed from the list of research providers on our website.
Removal from LRP status
You can request to be removed from the list of research providers at any time, by contacting us. We may also remove a provider from the list if a review indicates that the provider no longer meets the LRP criteria.
Providers that have been removed can reapply for LRP status at any time, as long as all LRP criteria are met.
Learn more
- Find out what R&D activities are eligible
- Find out what research activities are excluded
- What is research that is systematic, investigative and experimental?
- Eligible or excluded expenditure
- Limits on internal software development expenditure
- What to do when planning and running R&D activities
Date published: 24 Mar 2009
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