To explore your
Here we are back in New Zealand. investigating immigration opportunities. It is such a great go-ahead country. There is so much to write about its business, economy, and people. If you want a warm friendly welcome with a government and people who stretch themselves to help you establish yourself, your family and your business look no further. This post is just to let you know about a new NZ Research and Development incentive that will interest you.
Also you need to read about ‘scale-up’ its essential reading.
9th May 2019
CallaghanInnovation – NZ’s Innovation Agency
R & D Tax Incentive
This is a scheme that will support a wide range of businesses to undertake more R&D and grow NZ’s knowledge economy.
Explore your Business and Immigration Opportunities with Eastwood Global Business Migration Group
The Government has committed to raising New Zealand’s research and development (R&D) expenditure to 2% of GDP by 2027.
To reach this target more businesses will need to increase their expenditure on R&D. This will be supported through an R&D tax incentive, available from the 2019/2020 tax year for businesses conducting eligible R&D.
Main features of the incentive
The main features of the R&D tax incentive include:
- a credit rate of 15%
- a $120 million cap on eligible expenditure
- a minimum R&D expenditure threshold of $50,000 per year
- a limited form of refunds for the first year of the scheme that will mirror the R&D tax-loss cash-out scheme run by Inland Revenue. A more comprehensive policy will be in place for the second year of the scheme
- a definition of R&D that ensures the credit can be accessed more easily across all sectors, including the technology sector
- the inclusion of state-owned enterprises, industry research cooperatives, levy bodies, and minority-owned subsidiaries of select Crown entities.
When the tax credit will apply
The Taxation (Research and Development Tax Credits) Bill was passed into law on 7 May. The R&D tax incentive will apply to eligible R&D activities conducted by a business during the 2019/2020 tax year.
For most businesses this means expenditure on eligible R&D undertaken from 1 April 2019 will qualify for the R&D tax incentive, and they should record their R&D expenditure now to ensure their records are ready to file at the end of the tax year.
We encourage businesses to look into whether they might be eligible for the tax incentive by referring to draft guidance issued by Inland Revenue. This guidance will be finalised in the weeks following the Bill’s third reading.
For year one of the R&D tax incentive there is limited refundability available for smaller businesses with cashflow challenges. There is work underway on a more developed refundability process to support R&D businesses with limited tax liability and the Government is committed to having a decision in place for year two of the scheme.
More information about the R&D tax incentive is on MBIE’s website.
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What is Scale-Up NZ?
Created from a model that is hugely successful overseas, Scale-Up NZ makes it faster and easier for ambitious businesses to find and connect with the people, capital and other help they need to innovate and grow, here and offshore. It will also create opportunities for investors, incubators, multinationals and other collaborators to connect with innovative New Zealand businesses.
Scale-Up NZ enables users to find the accurate information they need, when they need it, in multiple ways. Get the inside track by diving into verified details of the latest investments, deals and start-ups, and navigate the ecosystem to explore new technology and business trends. For more in-depth analysis, browse for specific information using the platform’s comprehensive search feature. The advanced search options filter companies by business model, funding stage, location, product stage and more.
Users can find key contacts for businesses they’re interested in and ask for facilitated introductions to key people – extending networks and helping create connections that matter. Contact requests will be mediated to ensure their mutual value.
Similar networks overseas are growth engines for ambitious companies and national economies. In Aotearoa New Zealand, Scale-Up NZ will supercharge innovation and help build world-beating businesses and a better future for our children.
Visit Scale-Up NZ to begin your search for partners now.
You can also list your company or entity, if it meets one or more of the following eligibility criteria:
- Companies – Companies must be innovative, ambitious and local. You might be a Callaghan Innovation customer, someone who invests in R&D, or are seeking capital investment or targeting growth into international markets.
- Investors – Individuals or business entities that invest in innovative NZ companies.
- Hubs – Organisations whose primary purpose is to enable the commercial success of innovative NZ companies. You might be an incubator, accelerator, or co-working space.
- Multinationals – Companies originating abroad, with headquarters abroad, but pursuing R&D through a subsidiary or branch located in NZ.
To be included in Scale-Up NZ, you must be a legitimate, active and registered business or entity, searchable on a register administered and maintained by the NZ Companies Office (including the charitable trust, incorporated society and limited partnerships registers).
To upload your company details, you will need to complete the following steps:
- Visit the Scale-Up NZ website
- Click on ‘Sign up for free’ to create an account, using either a Google or LinkedIn account
- Once you have created your account, click on your profile in the top right corner and then select ‘Add your company’
- Follow the instructions to upload information about your organisation (please don’t include any commercially sensitive data or information that you don’t want to be seen publicly).
The Scale-Up NZ team will then review your uploaded content to ensure it meets our data standards, and will contact you if any clarification or changes are needed.
If you have any issues uploading your company information, please contact the Scale-Up NZ team.