New Zealand’s R&D Incentive to Benefit More Businesses
The New Zealand Government has revealed on the 2nd of May 2019, The Taxation Bill (Research and Development Tax Credits) has passed it’s third reading. Research Minister Megan Wood states that this would mean more small businesses will receive support undertaking R&D work.
Key features of the incentives were announced including:
- 15% credit rate
- $120 million cap on eligible expenditure
- Minimum expenditure threshold of $50,000 per annum
It is estimated that 2,000 – 3,000 businesses would be able to benefit from the new R&D incentive as compared to the current 300 businesses from the Growth Grants. This is the latest development in the Government’s goal of raising New Zealand’s total R&D spending to 2% of GSP by 2027.
Revenue Minister Stuart Nash says “supporting companies with R&D means we are supporting progressive thinking and helping to build a dynamic and innovative economy. At the same time, we have built in safeguards that mean companies have to meet transparent criterias to be eligible for the R&D credits”.
Further work is already underway to support all stages of business including start – ups.
Minister Woods encourages businesses undertaking R&D projects to find out whether they are eligible. If you would like to find out more about R&D or whether your company is eligible click here.