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Research and development (R&D) tax credit
Te tukunga take mo te rangahau me te whanaketanga

The R&D tax credit has been repealed, effective from the 2009-10 income year.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.

Applying to have the limit on internal software development expenditure increased

Can I have my limit on internal software development expenditure increased?

An annual maximum of $3 million of internal software development expenditure or depreciation is eligible for the R&D tax credit.

The Minister of Finance may increase this expenditure limit if the R&D is considered to be "in the national interest". The Minister must be satisfied that:

  • the internal software development will be exploited mainly for the benefit of the New Zealand economy
  • New Zealand will derive a substantial net benefit from the intended completion of the internal software development, and
  • the claimant has a commitment to retain the value of their business in New Zealand.

Where the Minister of Finance has increased the limit on your internal software development expenditure, all references to $3 million in this information should be read as references to your new limit.

How do I have the limit on expenditure increased?

Claimants will need to apply to the Minister of Finance, setting out:

  • details of the R&D activity, and
  • how the R&D activity meets the three criteria above.

You can apply to the Minister of Finance for an increase in this limit before the R&D activity begins.

All other eligibility requirements for the tax credit also need to be met.

Find out more about the process for applying for an increase to your limit on expenditure.

If you need help you can contact us for more information.

Conditions

To increase the expenditure limit, specific conditions that the applicant must meet may be included.

New Zealand legislation

Income Tax Act 2007

  • LH 13

Find out more

 


Date published: 03 Apr 2009

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