Research and development

Research and development

Reduce your immediate cash costs of research and development (R&D) by up to 48% through:

  • Callaghan Innovation Growth Grants of 20% of eligible R&D up to a maximum of $5 million per year
  • Cashing out R&D tax losses of up to $140,000 in the 31 March 2016 year, rising incrementally to $560,000 for the 31 March 2020 year.

Just because you aren’t developing software or growing things in test tubes doesn’t mean you aren’t doing R&D. This can take on many forms. Your product doesn’t need to be completely new. And companies of all sizes can potentially claim R&D loss credits – you don’t need to be a start-up!

However with these targeted R&D incentives comes rules, and with rules comes complexity.

How we can help

We’ll help you to get the maximum value of R&D incentives. With expertise in accounting, audit and tax across a range of industries, we’ll offer support and solutions tailored towards your business.

R&D Health Check

An initial no obligations meeting to understand your business and R&D activities, providing you with:

  • An outline of the potential opportunities for you to reduce the cash cost of R&D
  • The key steps you’ll need to take to access these benefits and where your potential risks lie.

R&D solutions

Next we can provide the following services to you to support your claims:

  • Guidance on best practice internal processes and accounting methodology (including a tailored accounting policy document) to robustly quantify your eligible R&D expenditure
  • Supporting the application and lodgement of the claim for the Callaghan Innovation Growth Grants and the R&D tax credit*
  • Independent assurance of your application and annual Callaghan Innovation Growth Grant claims.*

*subject to auditor independence considerations

Answering your toughest questions

What gets expensed as R&D under NZ IAS 38 Intangible Assets determines eligibility for Growth Grants and tax benefits, so a thorough understanding of NZ IAS 38 is crucial. So we’re here to help build your understanding and answer your tricky questions including:

  • Do my activities meet the definitions of ‘research’ or ‘development’ or are they something else?
  • What costs are directly attributable to those activities?
  • Do any R&D costs need to be capitalised, rather than expensed?
  • If we don’t prepare NZ IFRS financial statements do we still have to apply NZ IAS 38 to recognise R&D costs?
  • What are the excluded costs and activities under the Callaghan Growth Grant rules?
  • What can we include in directly attributable expenses?
  • Can we include management time, overheads, depreciation, consumables, accounting fees etc?
  • What are the tests for working out whether something qualifies?
  • What’s the amount of the R&D tax loss credit Inland Revenue will pay?
  • What’s required to be filed to access the R&D tax loss credit?
  • How long does it take for Inland Revenue to pay the R&D tax loss credit?

Want to know more?