Date: 1st June 2017
Does your business engage in research and development (R&D) work? If so, you could claim a special R&D tax credit of up to $224,000 this year that could ease cash flow problems and help get your product to market.
The R&D loss tax credit is designed to help New Zealand’s most innovative businesses and startups before they’ve taken products to market.
This means eligible businesses can “cash out” — claim and be refunded — up to $224,000 of their R&D losses in a given tax year.
Last year, the credit gave hundreds of businesses early access to their tax losses, improving their cash flow and allowing them to reinvest in their businesses.
The good news is you can claim the credit every year, as long as your business operates at a tax loss. For more details on eligibility requirements go to Inland Revenue’s website.
There’s a five step process to apply for the credit. We’re here to help if needed, please contact us.
Drone design business, Aeronovics was able to take advantage of the R&D tax credit. Find out more about their big idea and how they got it to market.
If you ‘d like to know more about how you can claim an R&D tax credit, please get in touch.