A focus on topical tax issues - October 2018
Government announces R&D tax incentive scheme details
On Wednesday 3 October 2018 the New Zealand Government announced updated details of the research and development (R&D) tax incentive scheme that will be available from the 2019/20 income year. Following a period of consultation the Government has made a number of positive changes to the design of the scheme that should address many of the concerns affected businesses had with the scheme as originally proposed in April 2018. You can read the high-level outline of changes made in this document. More detailed documents will be released shortly.
The Government intends that the scheme will go live from the beginning of the 2019/20 income year, which means for taxpayers with an early balance date it will be relevant very soon (and for those with an October balance date it theoretically already applies from 1 October 2018). This timeframe will depend on the Government being able to draft and pass the legislation in a reasonably speedy fashion. This means businesses undertaking R&D need to get ready to be able to adopt the new rules quickly, to take full advantage of the new R&D tax credit.