Encounter the Difference

NZ CA is an association of independent Chartered Accounting firms, proactively working together for the benefit of our clients.

Make the most of the new RESEARCH & DEVELOPMENT Tax Incentive Program (R&D)

Make the most of the new RESEARCH & DEVELOPMENT Tax Incentive Program (R&D)

New Zealand’s recently introduced R&D Tax Incentive program offers some of the most generous
R&D funding benefits available across Asia Pacific.

This tax incentive program will play a major role over the next 10 years in lifting New Zealand business R&D spend to an ambitious 2% of GDP (up from 0.63%) by the year 2030. It will also assist in countering the phasing out of the existing Callaghan Innovation Growth Grants due to end on 31 March 2021.

Overview of key points includes:
● 15% tax credit rate per year (should certain criteria be met)
● A minimum R&D spend of $50,000 per year
● $120 million cap on eligible expenditure
● Applies from 1 April 2019 for businesses undertaking eligible R&D activities

Refund parameters:
● In the first year there is a refund cap of up to a maximum of $255,000 – reflective of an R&D spend
of $1.7 million (refundable provided certain criteria are met)
● R&D tax credits not refunded are carried forward (subject to shareholder continuity rules applying to losses as per the Income Tax Act 2007)
● Tax credits applied as refunds can be coupled with the R&D Tax Loss cash-out regime which can result in up to 43% refunds on R&D spend
● In the first year the maximum amount of R&D tax refund available is $255k + $476k R&D tax loss
refund cap
● Special rules apply to the management of tax loss cash-outs in future tax years

Defining R&D eligible activities:
To meet R&D tax incentive criteria, R&D projects must contain at least one ‘core’ R&D activity. Factors determining eligibility will include whether a business can confirm if:
● Proposed activity is included/ excluded under schedule 21 of the Income Tax Act 2007
● Eligible R&D activity is undertaken in/out of New Zealand (although eligibility is limited for work
outside of New Zealand)
● Material purpose of the activity will create new/improved knowledge, processes, services or oods, or resolve scientific or technological uncertainty
● Work is undertaken in an organised and planned manner and is able to formulate and test possible outcomes

Note: R&D activity will not be ‘core’ if the knowledge required to resolve scientific or technological
uncertainty is:
● Publicly available, or
● Deducible by a competent professional in that relevant field

Support in claiming Tax Incentives 
Claiming R&D tax incentives is easy with the right advice and documentation. We are able to provide support in determining eligibility of opportunities to maximize additional tax credits and refunds enabling greater investment into your ongoing R&D program.

The Government has committed $1 billion over the next four years, for this program. Speak to us now about establishing a correct governance and documentation process to take full advantage of this program.

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McDonald Vague Limited

Our experience in business turnaround, restructuring and insolvency has helped many New Zealand companies through periods of growth and change, as well as difficult times.

We advise underperforming businesses how to protect their financial future and find stability through a range of turnaround services including independent accounting reviews, raising finance and divestment.

Region: Auckland

Phone: 0800 30 30 34

Young Read Woudberg

Trust YRW for highly professional accountancy support – as well as for expertise in business development, new business establishment and information technology.  We have a firm emphasis on regional business needs and are particularly close to local dynamics in the property, commercial and horticultural sectors. YRW are well resourced to provide experienced, informed, independent advice while we remain small enough to form long lasting personal relationships.

Region: Bay of Plenty

Phone: 07 578 0069

Brown Glassford & Co Ltd

Brown Glassford & Co Limited have a long history providing specialist farm accounting and business advice to the rural community. The combination of experience, expertise and quality staff makes us one of the leading providers of farm accounting services in the South Island. At Brown Glassford & Co Limited we also provide management and accounting advice to the commercial sector.

Region: Canterbury

Phone: (03) 365 0881

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Accountants Hawke's Bay Limited

Accountants Hawkes Bay is an Independent Chartered Accountancy firm operating in Hawke’ Bay providing quality business and financial advice. We are a progressive firm specializing in accounting, taxation, business growth and software solutions for small to medium sized businesses.

Region: Hawke's Bay

Phone: 06 843 4868

Naylor Lawrence

At NLA we believe that a good accountant will ensure your compliance and tax is completed to standard and on time. However, a great accountant will take the time to understand your vision for growing your business and help you plan the journey to achieve it. With some checks along the way!

Our team has the expertise to assist your business, whether it’s big or small, just starting out, or needing some fine tuning. We don’t just offer services – we offer personalised solutions for each of our clients.

Region: Manawatu/Wanganui

Phone: 06 357 0640

Wallace Diack Chartered Accountants Ltd

With over 50 years combined experience in New Zealand, Wallace Diack is committed to providing a comprehensive range of practical accounting services for today's economic environment that help you realise your goals.

We appreciate that selecting a firm to entrust with your accounting requirements is an important decision, intensified by rapid economic changes, increases in competitive pressures, and resource availability. With our benchmarking, cash flow forecasting, and other tools, Wallace Diack is well placed to help you make an informed decision.

Region: Nelson/Marlborough

Phone: (03) 578 7389

Sudburys Limited

Sudburys look after business owners providing solutions in all areas related to accounting, finance and wealth management. They work alongside their clients, from supporting them with their daily accounting needs, to providing them with valued business advice.

Region: Northland

Phone: (09) 430 4888

G S McLauchlan & Co

GSM is a Dunedin based Business Advisory and Chartered Accountancy practice founded in 1957. 

GSM pride themselves on our specialist knowledge, our ability to keep fresh in today's ever changing environment

Region: Otago

Phone: 03 477 8192

McIntyre Dick Limited

McIntyre Dick is a vibrant, driven, and people focused firm of Business Advisors and Chartered Accountants leading the industry in Southland, New Zealand. They’re dedicated to delivering exceptional service and strive to put time, mind and money back in their clients’ hands.

Region: Southland

Phone: 03 211 0801

Harris Taylor Limited

The Accountancy world is constantly changing and highly competitive. At Harris Taylor their challenge is to stay ahead of the competition by providing the best possible service, whilst ensuring that client satisfaction remains our primary motivation and ultimate goal.

Region: Taranaki

Phone: 06 278 5058

Strettons & Co Limited

Strettons Directors lead an energetic team of skilled professionals. Their team is motivated, multi-talented and works hard to achieve maximum results for clients. Their strengths and specialities align with the backbone of New Zealand industry - forestry, farming, geothermal energy, tourism, property small to medium business and human resources.

They recognise that one size does not fit all and their business reflects this, they employ the best people with a range of talents to service their clients.

Region: Waikato

Phone: (07) 376 1700

Southey Sayer

Offering a full range of accounting and business development services, tailored to meet the needs of each individual client. The wide range of expertise and experience within the firm is shared amongst the partners and their teams for their clients benefit. Services and products offered are fully flexible there will be no expectation to conform to a certain product or pricing structure.

Region: Wairarapa

Phone: (06) 370 0811

BW Miller Dean Ltd

BW Miller Dean Ltd was formed on 1 April 2016 with the merger of two long standing Wellington chartered accountancy practices: BW Chartered Accountants Ltd and Miller Dean Chartered Accountants Ltd. 

BW Miller Dean pride themselves on building relationships based on trust with clients through personal, individual attention, and always being available to help their clients with specialist Accounting or Finance functions when needed.

Region: Wellington

Phone: 04 910 3340

Marshall & Heaphy Limited

Central to the culture of the team that has been developed over their history, is the belief that successful and sustainable businesses are the backbone for the West Coast community. Great businesses create jobs, keeping people and family together on the Coast, building a sustainable community.

Region: West Coast

Phone: 03 768 7186