The R&D tax credit has been repealed, effective from the 2009-10 income year.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.
Assess your eligibility
Determining eligibility
The research and development (R&D) tax credit is based on the principle of self-assessment. This means that claimants are responsible for applying the eligibility criteria to determine if they are eligible to claim the credit.
Larger version of image | Long description of flowchart
In order for you to assess your eligibility for the R&D tax credit, there are three sets of tests that you must consider:
- You must be an eligible business/person
- Your R&D activities must be eligible
- Your expenditure on R&D must be eligible.
The sets of tests to be considered are outlined below:
1. Eligible business/person tests:
- Eligible business/person tests
- "On behalf of" tests.
2. Eligible R&D activities tests:
- Eligible R&D activities
- Resolution of scientific or technological uncertainty
- Appreciable novelty
- Excluded activities
- Support activities.
3. Eligible expenditure tests:
- Deductibility, eligible expenditure and depreciation loss
- Funding
- Minimum threshold
- Limits on internal software development expenditure
The R&D tax credit provisions are largely included in subpart LH of the Income Tax Act 2007 and in schedule 21 of the Act. A number of administrative provisions are included in the Tax Administration Act 1994.
The legislation repealing the tax credits is in part 2 of the Taxation (Urgent Measures and Annual Rates) Act 2008.
New Zealand legislation
Income Tax Act 2007:
- subpart LH
- schedule 21
Date published: 06 Nov 2009
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