R&D TAX CONCESSION
The R&D Tax Concession enables companies to deduct qualifying expenditure incurred on R&D activities when lodging their corporate tax return. The concession has four elements:
- A base concession provides 125% deduction for R&D expenditure
- The R&D Tax Offset allows companies to cash out their deductions as an offset, which helps small companies with tax loss
- The Incremental Tax Concession is a 175% deduction for companies increasing their R&D above their three year rolling average. This can also be used as an offset for small companies
- The Incremental (175% International Premium) Tax Concession targets companies belonging to a multinational enterprise group, where R&D is being conducted on behalf of a grouped foreign company. It provides a 175% deduction for additional R&D expenditure above a rolling three year average. While the base expenditure is generally eligible at 100%
For further information please contact Gilli Williams, Region
al Manager for South West NSW on 02 6921 1828 or refer to the AusIndustry Website www.ausindustry.gov.au
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R&D TAX CREDIT
The R&D Tax Credit which opens to applications in July 2011 will replace the R&D Tax Concession with a tax credit system. The Tax Credit includes a 45% refundable tax credit that is provided to companies with a turnover of less than $20 million per annum or a 40% non-refundable tax credit that is provided to companies with a turnover of $20 million or more per annum.
For further information please contact Gilli Williams, Regional Manager for South West NSW on 02 6921 1828 or refer to the AusIndustry Website www.ausindustry.gov.au
