Country Profiles

Download Full Guide

New Zealand

New Zealand offers a flat 15% tax credit for all companies.

Download Full Guide

New Zealand,
all companies

Benefit Overview

15% tax credit.
Eligible Claim Period

1 historic year, plus 30 days to file.
Historical Background

An R&D scheme existed in NZ for a few years around 2008-10 but was abolished.

A new scheme was introduced for the 2019-20 income year; although based on many similar schemes in anglophone countries it is still quite immature.

Ease of Application

Generally fairly straightforward; NZ Revenue is open to cooperative discussions prior to claims.

Expectation of contemporaneous documentation of R&D, although this is flexible and it is recognised that the record-keeping should not be onerous.

Regulating Body Policies

From 2020-21, claims over $2m must either seek specific approval for each R&D activity; or seek ‘significant performer’ approval for he claim methodology and certification of the R&D activities.
Eligible Costs Fairly broad – works on an exclusionary basis. Generally all opex is eligible, including depreciation, as long as it can be directly attributable to R&D. There are however, particular restrictions:

  • Costs related to commercial production are limited only to additional costs incurred because of the R&D.
  • Outsourced R&D can only be claimed on a ‘look through’ basis.
  • The ‘feedstock rule’ applies to materials, limiting to the cost of input less the value of output.
Issues to Consider Strong Innovation and R&D indicators are expected, such as IP and cooperation with research organisms.