We're lagging behind and it needs to change. What is the R&D Tax Incentive?
The Government has set an ambitious goal to increase New Zealand's R&D spend to 2% of GDP by 2027. We’re lagging behind other countries, and the Government wants to change this by encouraging more businesses to invest more in R&D.
Growing R&D is a key lever in diversifying the economy and creating new industries, businesses, and highly skilled jobs for the benefit of all New Zealanders. So I'm excited to introduce you to the new R&D Tax Incentive (RDTI) Hub.
Delivered by Inland Revenue in partnership with Callaghan Innovation, the RDTI is New Zealand’s flagship initiative to support R&D investment. Businesses can get 15% of eligible R&D expenses back through a credit that reduces their income tax bill. The Government estimates there are more than 2,000 businesses that could benefit from RDTI, but the truth is many may not know about it. A wide range of R&D support is available to New Zealand businesses, whether you’re just starting out or already a significant R&D investor.
The RDTI is designed to encourage a wide range of New Zealand businesses to undertake more R&D. Businesses spending between $50,000 and $120 million a year on R&D may be eligible to claim, and businesses that spend under $50,000 per annum may still claim if they work with an approved R&D provider. There are also provisions for businesses wishing to spend more. Find out more here