With a 45% refundable tax offset (equivalent to a 150% deduction) up for grabs it's a wonder why more businesses don't claim the R&D Tax incentive. This generous tax deduction is available to businesses with a turnover below $20 million (a 40% tax offset, equivalent to a 133% deduction is available to all other eligible entities).
Let's say your business makes organic fertilisers. Your annual turnover is $10 million but has a tax loss. The company has spent $1 million on research and development in 2011/2012. Assuming the research and development undertaken by the business meets the criteria, the organic fertiliser business will receive a refund of $450,000 when it lodges its 2013 tax return.
But, there are a couple of things you need to do first. You need to apply to access the R&D Tax Incentive through AusIndustry before 30 April 2013. Once AusIndustry processes the registration, a number is issued that will be disclosed on the company tax return. The business's tax return cannot be lodged before the claim is made.
Need help applying for access to the R&D Tax Incentive scheme? Contact us on 02 9957 4033 or email us with your enquiry before you apply
. Our team has extensive experience in supporting businesses with R&D requirements.
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Last updated March 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.