The R&D tax credit has been repealed, effective from the 2009-10 income year. It is still available for qualifying expenditure on R&D activities carried out in the 2008-09 income year. Find out more about the R&D tax credit repeal >
Tax agents: To file a detailed statement on behalf of a client, you must upgrade your online services user ID to access your client's detailed statement. For help, ask the online services support person or administrator in your office, or contact the R&D tax credit team.
Definition of R&D activities
Important
Carrying out R&D does not automatically qualify your business for the R&D tax credit. The definition of R&D for the tax credit differs from that used by government agencies such as the Foundation for Research, Science and Technology (FRST), and New Zealand Trade and Enterprise (NZTE).
To be eligible for the R&D tax credit, activities must:
- be directed at acquiring new knowledge or creating new or improved materials, products, devices, processes or services, and
- include systematic, investigative and experimental (SIE) activities, and
- either:
- seek to advance science or technology by resolving scientific or technological uncertainty, or
- involve an appreciable element of novelty.
Support activities
Activities that support R&D may qualify for the tax credit if they are wholly or mainly for the purpose of, required for, and integral to, carrying out the SIE activities.
Excluded activities
Certain activities are excluded from being SIE activities, although they may be support activities. Find out what R&D activities are excluded.
Assessing your activities
See Assess your eligibility to help you assess whether your R&D activities may be eligible for the credit.
If your assessment is rejected or adjusted downwards, use-of-money interest and penalties will apply in the normal way. Find out more about penalties and use-of-money interest.
Date published: 01 Oct 2008
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