Research and development
Helping you get the maximum value of R&D incentives
Making your innovation dollars go further
Reduce your immediate cash costs of research and development (R&D) by up to 48% through:
- Callaghan Innovation Growth Grants of 20% of eligible R&D up to a maximum of $5 million per year
- Cashing out R&D tax losses of up to $140,000 in the 31 March 2016 year, rising incrementally to $560,000 for the 31 March 2020 year.
Just because you aren't developing software or growing things in test tubes doesn't mean you aren't doing R&D. This can take on many forms. Your product doesn't need to be completely new. And companies of all sizes can potentially claim R&D loss credits - you don't need to be a start-up!
However with these targeted R&D incentives comes rules, and with rules comes complexity.
How we can help
We’ll help you to get the maximum value of R&D incentives. With expertise in accounting, audit and tax across a range of industries, we’ll offer support and solutions tailored towards your business.
R&D Health Check
An initial no obligations meeting to understand your business and R&D activities, providing you with:
- An outline of the potential opportunities for you to reduce the cash cost of R&D
- The key steps you’ll need to take to access these benefits and where your potential risks lie.
R&D solutions
Next we can provide the following services to you to support your claims:
- Guidance on best practice internal processes and accounting methodology (including a tailored accounting policy document) to robustly quantify your eligible R&D expenditure
- Supporting the application and lodgement of the claim for the Callaghan Innovation Growth Grants and the R&D tax credit*
- Independent assurance of your application and annual Callaghan Innovation Growth Grant claims.*
*subject to auditor independence considerations
Answering your toughest questions
What gets expensed as R&D under NZ IAS 38 Intangible Assets determines eligibility for Growth Grants and tax benefits, so a thorough understanding of NZ IAS 38 is crucial. So we’re here to help build your understanding and answer your tricky questions including:
- Do my activities meet the definitions of ‘research’ or ‘development’ or are they something else?
- What costs are directly attributable to those activities?
- Do any R&D costs need to be capitalised, rather than expensed?
- If we don’t prepare NZ IFRS financial statements do we still have to apply NZ IAS 38 to recognise R&D costs?
- What are the excluded costs and activities under the Callaghan Growth Grant rules?
- What can we include in directly attributable expenses?
- Can we include management time, overheads, depreciation, consumables, accounting fees etc?
- What are the tests for working out whether something qualifies?
- What's the amount of the R&D tax loss credit Inland Revenue will pay?
- What's required to be filed to access the R&D tax loss credit?
- How long does it take for Inland Revenue to pay the R&D tax loss credit?
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