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Research and development (R&D) loss tax credit eligibility

To work out if a company is eligible from 1 April 2015 you'll need to apply eligibility criteria to determine if the company can cash out R&D tax losses.

The tool is divided into two question flows and you'll need to choose either the:

  • individual company flow, or
  • group of companies flow.

Go to the meaning of group of companies on the New Zealand Legislation website - Income Tax Act 2007 section IC 3(1)

A number of requirements form part of the eligibility criteria and will determine whether a company is eligible or not. For example:

  • Is the company loss-making?
  • Is the company NZ tax resident?
  • Does the company incur expenditure relating to R&D in the application year, and
  • Is the company expenditure on R&D salary and wages 20% or more of total salary and wages.

Once you have determined if the company is eligible to apply, any resulting application will still need to be assessed for approved R&D activity.

If you're unsure of your situation we recommend you seek advice from a tax advisor.

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