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.
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