The aim of the R&D loss tax credit is to allow start-up companies (with an R&D focus) to refund tax losses caused by qualifying R&D expenditure.
To 'cash out' any tax losses from R&D expenditure you must meet the eligibility criteria.
To be eligible the company must:
- be a tax resident in New Zealand
- have a net loss in the corresponding tax year
- have eligible R&D expenditure for the income year
- have sufficient R&D wage intensity
- meet the corporate eligibility criteria
- own (solely or jointly) the intellectual property and know-how that results from the R&D activity.
Groups of companies
If you meet the criteria listed above and you are part of a group of companies you may still be eligible.
- The group as a whole must be in a tax loss position.
- The R&D wage intensity threshold must be met by the group as a whole.
Your company is ineligible if it is:
- treated as a resident of a foreign country or territory under a double tax agreement
- a look-through company
- listed on a recognised exchange, for example, a stock exchange
- 50% or more of the shares in the company are owned by anyone or a combination of, a
- a public authority
- local authority
- crown research institute
- state enterprise
- established by or subject to:
- the Education Act 1989
- the New Zealand Public Health and Disability Act 2000
- the Crown Entities Act 2004