How to get Research and Development (R&D) tax credits


  1. Learn how to get Research and Development (R&D) tax credits 

Why get R&D tax credits? 

One of the most effective ways to get tax savings for your business is the R&D tax credit, a massive tax saving opportunity for your business engaged in eligible R&D activities with the Australian Taxation Office in Australia and the Inland Revenue Department in New Zealand.  

You’ll get to accurately track time and expenses spent on R&D projects and sync that data with Wiise for better and easier cost accounting and reporting.  

How to get R&D tax credits? 

To claim R&D tax credits, you need to follow these steps: 

  1. Understand the Eligibility Criteria: Check if your business is eligible for R&D tax credits. These credits are available to businesses that incur expenses on eligible R&D activities as being systematic, investigative, and seeking to make a scientific or technological advancement. 
    1. Eligible activities in Australia via the Australian Taxation Office. 
      1. Before you start your registration, check your application is eligible by going through the ATO’s pre-registration checklist.  
      2. To register for eligible R&D activities, you need to conduct or plan to conduct at least one core R&C activity. Some activities are excluded from being core R&D activities.  
      3. Any supporting R&D activities must directly relate to your core R&D activities.  
    2. Eligible activities in New Zealand via the Inland Revenue Department
      1. Complete the 10 minutes R&D Tax Incentive eligibility tool to help you determine if your business and activity may be eligible for the R&D tax incentive.  
  2. Record R&D activities: Keep detailed records of your R&D activities in Wiise, including project plans, research notes and expenditure related R&D projects. This information will be required to support your R&D tax credit claim. 
    1. Keep detailed records of your R&D activities in Australia 
    2. Keep detailed records of your R&D activities in NZ. 
  3. Calculate R&D Expenditure: Calculate the eligible R&D expenditure incurred during the relevant accounting period. This may include costs such as employee wages, contractor costs, software costs, and consumable materials used in R&D activities.
  4. Submit R&D Tax Credit Claim: Prepare and submit your R&D tax credit claim to the relevant tax authority or government agency.  
    1.  Use the R&D Tax Incentive customer portal with ATO to submit your tax claim. 
    2. Submit R&D tax credit claim in myIR with New Zealand. 
  5. Review and Approval: The tax authority or agency will review your claim and may request additional information or clarification. Once approved, you’ll receive the R&D tax credits as a reduction in your tax liability or as a cash payment, depending on the jurisdiction. 
  6. Compliance and Record-Keeping: Ensure compliance with any reporting or record-keeping requirements associated with claiming R&D tax credits. Maintain accurate records of your R&D activities and expenditures for future reference and audits. 

  7. You've completed the R&D tax credit process for your business. 

Note: If your R&D tax credit claim is approved, you will receive the R&D tax credits as a cash refund or a reduction in tax payable, depending on your circumstances. 

Tip: It's advisable to seek advice from tax professionals or consultants with expertise in R&D tax credits to ensure that you comply with all requirements and maximise the benefits available to your business. 

Note: Refer to the Australian Government Business website to gain more knowledge on research and development (R&D) tax incentive. You can also visit the Australian Taxation Office for more information on the R&D tax incentive.  

Note: Refer to the New Zealand Inland Revenue website to gain more knowledge on research and development tax incentive.  

What’s next? 

It’s the end of the financial year and you need to prepare information for auditors so they can ensure that financial statements for your business comply with accounting standards and regulations.  


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