The 43.5 cent ‘cash back’ benefit is now available to some companies incorporated in Hong Kong and who undertake R&D in Australia.
Who is eligible?
Hong Kong incorporated entities may be eligible where they have setup:
What’s it worth?
The following table provides a more specific overview:
Condition | Requirement |
Group Turnover | All companies in group collectively have a turnover less than AU$20 Million |
Tax Position | Australian Company is in Tax Loss |
Benefit | 43.5% of costs refunded (i.e. AU$0.435 refund for every dollar spent) |
Example 1:
An Australian subsidiary company, may be eligible for the R&D tax incentive, where:
Example 1: | Expenditure |
Australian Subsidiary Company’s R&D expenditure | $100,000 |
Australian Subsidiary Company’s R&D Tax Incentive Benefit | $43,500 Cash Refund |
Requirements for setting up an Australian Company
Foreign companies will need to set up an Australian company, and expect the following:
How do I claim my expenditure?
If you have a Hong Kong incorporated entity and interested in claiming the R&D Tax Incentive in Australia, contact us to determine your eligibility and discuss your options.
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