The new R&D Tax Incentive application form is now available on Ausindustry website ahead of the 1st July 2012 opening date. The form contains many significant changes under the new legislation that differ from the previous years.
But before you consider filling this form out you need to be aware of three new areas that need to be sorted out before 1 July 2012.
1) Payments to Associates- payments must be made in the year of the application whereas previous years accrued payments were sufficient.
2) Advance Findings- for determination of eligible R&D activities prior to submitting the registration form must be done in the year before the end of the year in which you want to claim. The findings will be binding for 3 years based on the information submitted.
3) Overseas Findings- you must register overseas activities in advanced findings in the first year of activities (note some incidental costs may still be claimable without Overseas finding) – max claim amount is less 50% of total R&D costs.
Peter Nolle is a Registered Tax Agent for R&D Tax. If you would like to find out more about how Treadstone can maximise your R&D Tax claim call us now on (03) 9008 5937.
The R&D Tax Incentive provides a targeted tax offset designed to encourage more companies to engage in research and development in Australia.
The R&D Tax Incentive has two core components:
- a 45 per cent refundable tax offset (equivalent to a 150 per cent deduction) to eligible entities with an aggregated turnover of less than $20 million per annum
- a non-refundable 40 per cent tax offset (equivalent to 133 per cent deduction) to all other eligible entities.
Find out more information about the R&D tax incentive.