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Research and Development Tax Incentive: Guidance

Research and Development Tax Incentive: Guidance - IR1240

This guide will help you understand the intent and application of the research and development (R&D) tax credit.

This guide covers:

  • eligible activities, entities and expenditure
  • using, and becoming, an approved research provider
  • claiming and receiving the tax credit, and
  • managing disputes.

Return and development (R&D) supplementary return

To claim the R&D Tax Incentive in the 2019-20 year you must:

  • complete an R&D supplementary return electronically
  • include the value of the tax credit you are claiming in 2019-20 in your income tax return, which you will also need to file electronically
  • file your R&D supplementary return and income tax return by the required dates.

To access the R&D supplementary return in your myIR account you must be enrolled for the R&D Tax Incentive. Once you are enrolled the R&D supplementary return will be available to you after the end of your 2019-20 income year.

Download Understanding the research and development (R&D) supplementary return to understand the information you will need to complete the return.

Note: The process will change in the 2020-21 year. More detail is included in the Research and Development Tax Incentive: Guidance PDF above.

Draft guidance on changes proposed to R&D Tax Incentive in the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

This document consults on draft R&D Tax Incentive guidance related to changes proposed in the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill.

The draft guidance is based on the Bill as introduced and will be updated to reflect feedback and changes made during the legislative process. The topics covered are:

  • changes to the eligiblity of organisation which receive exempt income
  • changes to the refundability rules
  • changes related of the internal software development definition.

Please provide any feedback on the Loomio forum at govt.loomio.nz/rdtaxcredit or by email to R+Dincentive@ird.govt.nz

If the feedback is to be considered for inclusion in the next update, please provide it by 11 February 2020.