The Australian 43.5% R&D tax offset is available to some foreign companies who undertake R&D in Australia. Who is eligible? Foreign entities may be eligible where they have setup: an Australian resident company; a corporation that is an Australian resident for taxation purposes; or a permanent establishment in Australia. What’s it worth? The amount that a foreign entity can claim through the R&D Tax Incentive depends on the turnover of the company and whether it has recorded a profit or loss […]
The ATO recently issued TD 2014/15. This Tax Determination relates to the R&D tax incentive and discusses the treatment of expenditure incurred by an R&D entity during various design stages (Design Expenditure) connected with it beginning to hold a tangible depreciating asset, where that expenditure also falls within the terms of section 355-205 of the Income Tax Assessment Act 1997 (ITAA97). The determination addresses the question of when to include the Design Expenditure in the first element of the cost […]
For information about upcoming requirements for June year end companies, please click here. Eligibility Checklist: Are you Eligible to claim the R&D Tax Incentive? Check out our Eligibility Wizard to find out. Audit Checklist: Can you handle an AusIndustry Audit? Take our questionnaire to find out.
Announced in the recent Federal Budget was the Government’s plan to raise over $1 Billion by cutting funding to the R&D Tax Incentive and a range of grants. The savings from these measures will be redirected to repair the Budget and fund policy priorities. Proposed Reduction to the R&D Tax Incentive The R&D Tax Incentive operates whereby a company forfeits a general income tax deduction for their R&D expenditure in exchange for a turnover determined R&D Tax Offset. The permanent […]