Companies seeking to claim expenditure for overseas activity incurred by an Australian company under the R&D Tax Incentive must apply separately to claim these costs by lodging an Overseas Finding Application with AusIndustry.
In addition to general eligibility criteria, there are specific and extensive rules to determine whether expenditure on overseas activities is eligible under the R&D Tax Incentive.
Generally, R&D activities conducted overseas can only be eligible for the R&D Tax Incentive where:
This time of year, it is important to note:
Overseas Finding Applications have been known for requiring a lot of information and supporting evidence, and can be very time consuming to collate.
AusIndustry has however sought to streamline processes in recent years, and we have anecdotally noted that Overseas Findings Applications lodged in the FY22 period seemed to be processed fairly efficiently when compared with processing of findings in prior years.
Given the magnitude of work involved and the inability to attain any extension, companies seeking to lodge Overseas Findings Applications for the YE 30 June 2023 (FY23) should be well underway in collating their applications for lodgement by 30 June.