Are you looking for more ways to optimise your company tax return through government grants and tax incentives? Stay tuned as we break down the ins and outs of the R&D tax incentive in this article. We will discuss the R&D tax incentive rate, using the R&D grant, the R&D tax incentive application process and more With this information you can make an informed decision about hiring an R&D tax incentive consultant to assist with your application.
What is the Research and Development tax incentive?
The Research and Development tax incentive provides companies with a tax offset for expenditure on eligible R&D activities. This incentive provides a credit on the eligible expenses in order to encourage business investment in innovation, research and development. The tax offsets can be applied annually, providing a predictable support system to encourage spending on R&D.
Put simply, you get a tax refund of 43.5% on eligible R&D expenses, making these expenses essentially discounted by 43.5%! This can be a major benefit for small businesses!
What types of items are claimable for the R&D tax incentive?
Indicators of whether your company conducts R&D include: