Improving access to the R&D Tax Incentive for firms in loss

Published: 12 July 2019

A new Bill could see a more comprehensive refundability policy apply to the Research and Development Tax Incentive scheme from the 2019/2020 tax year.

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill, introduced to Parliament in late June, includes amendments that would make refunds of R&D tax credits more broadly available. Refunds would generally only be capped at the amount of payroll-related taxes such as PAYE and FBT paid in the same tax year. 

If passed, the provisions will provide better access to the Tax Incentive for many pre-profit businesses, as well as businesses in loss, so that they are supported to increase their investment in R&D. This achieves the goal of supporting as much eligible R&D as possible while maintaining the integrity of the tax system.

The Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill(external link)

More information about the Research and Development Tax Incentive.