The research and development (R&D) loss tax credit is a refund of R&D business losses. The credit can only be for:
- eligible R&D business expenditure
- up to 28% of your tax losses from R&D activity
- companies who are a tax resident in New Zealand
- dates on or after 1 April 2015.
Generally, you carry tax losses forward to the next income year. When you get the R&D tax credit you do not carry R&D business losses forward to use against income in future years. We call this 'cashing out your R&D losses'.
The R&D loss tax credit is different from the research and development tax incentive.
The R&D loss tax credit must be repaid when your business either:
- begins to make a profit
- owes repayment tax following a loss recovery event.
You must repay cashed out R&D losses before you can claim imputation credits for income tax paid.
Tax Technical advice
Read more information about R&D tax credits on our Tax Technical website.
Moving between Inland Revenue sites
Heads up. We're taking you to our old site, where the page you asked for still lives
Last updated:
15 Nov 2023