An Advanced Finding is a binding decision from Innovation Australia about the eligibility of a company’s activities under the R&D Tax Incentive. It operates similar to a private ruling request and has the intention to provide certainty for companies.
Similarly, an Overseas Finding is a binding decision that relates to overseas activities and expenditure. There are specific rules surrounding the inclusion of overseas expenditure within a company’s Australian R&D Tax Claim. A company must seek approval to claim the overseas expenditure through an Overseas Finding Application before year end.
Generally, R&D activities conducted overseas can only be eligible for the R&D Tax Incentive where:
The activity to be conducted overseas has a ‘significant scientific link’ to core R&D activities conducted in Australia.
The expenditure on overseas activities is less than expenditure on Australian Core and Supporting Activities.
The overseas activity cannot be conducted within Australia for reasons outlined within the R&D Tax Legislation (generally, contravention of Australian laws or restricted access to expertise and natural features).
June year end companies intending to claim overseas costs in the current year’s R&D claim must submit the activities relating to those costs through an Advanced Finding by 30 June.
Applicant’s should consider the following points prior to lodgement of an Overseas Finding: