Check out our first R&D update for 2020.
The fourth video in the series focuses on your R&D expenses and their eligibility under the tax incentive regime. Essential to your expenses being eligible is ensuring that they are directly related to your core R&D activity.
The video series is aimed at giving businesses a succinct overview of the tax incentive regime, so that you can start implementing what is required to benefit your R&D incentive claim. We will be adding to the series as the regime develops and Inland Revenue releases further operational information. Check out our videos to date on our approach to the R&D tax incentive and what the R&D tax incentive is.
Of most importance to your business, are the recent steps taken by Inland Revenue and Callaghan Innovation to develop the In-year approval mechanism (for the 2020-21 onwards) and Supplementary R&D return form. Inland Revenue and Callaghan Innovation will be working alongside each-other to administer the regime, with Callaghan Innovation providing technical oversight for in-year approval and claim processing.
Registration for the incentive
Remember, to access the R&D tax incentive, you must have registered with Inland Revenue. Registration can be actioned through your MyIR portal in the “I want to…” tab.
You will be required to demonstrate your eligibility to register. If you think that you are not eligible or the questions result in you not being eligible, please give one of our team members a call.
If you are doing legitimate R&D, its more likely that you have accidentally clicked the wrong box!
In-year approval and supplementary returns
Once you have registered, to access the incentive you will be required to file a supplementary R&D return.
Both the Supplementary return and In-year approval (available later this year, for the 2020-21 year onwards) will require you to explain your R&D projects and activities (core and supporting) at a level of detail sufficient to convey to Inland Revenue and Callaghan Innovation that your R&D meets the eligibility tests.
The information that is required can broadly be broken down as follows:
We look forward to providing you with more information as the In-year approval mechanism is made operational.
© 2020 KPMG, a New Zealand Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.