Ngā kamupene māraurau mō te whakahekenga tāke ngaromanga rangahau me te whakawhanake Eligible companies for the R&D loss tax credit

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. 

R&D wage intensity criteria

Meaning of R&D group

Group of companies definition

Ineligible entities 

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