R&D tax credit changes can boost cashflow (August 2017)
Changed Research and development (R&D) tax credit rules, which came into effect at the start of the 2016 income year, can help business cashflow.
The R&D Tax Credit regime allows a "cash out" of an organisation's R&D tax losses. The cashed-out amount must be repaid from future income.
In general, a taxpayer will be eligible for the cash out if they:
Subject to Disclaimer
- Are a New Zealand tax resident company
- In a tax loss position
- Maintain continuing ownership of intellectual property
- Have a "wage intensity" of at least 20 percent (calculated as total R&D labour expenditure ÷ total labour expenditure).