Claiming the R&D Tax Incentive this Tax Time
Consider these key points about the R&D tax incentive before you lodge your company tax return this year.
If you engage in research and development (R&D) activities and are eligible for the R&D tax incentive, you must lodge an R&D tax incentive schedule when you lodge your company tax return.
Before lodging your 2023 company tax return and the R&D schedule, consider these key points:
- review your eligibility
- use the instructions for the 2023 schedule
- you can use the R&D calculator to help calculate your R&D tax incentive claim.
- the offset rates are different depending on your company’s aggregated turnover and R&D intensity
- the R&D expenditure threshold increased to $150 million per year from income years starting on or after 1 July 2021
- R&D activities conducted overseas must be covered by an Overseas Finding
- there are general anti-avoidance rules in Part IVA to cancel the R&D tax offsets obtained in connection with a scheme
- you must register each of your R&D activities with AusIndustry through the R&D Tax Incentive customer portal before you lodge your claim.
The rates that apply for companies that have an aggregated turnover of $20 million or more or, are controlled by income tax exempt entities, is their company tax rate plus:
- 8.5% for R&D expenditure up to 2% R&D intensity
- 16.5% for R&D expenditure above 2% R&D intensity.
If your company has an aggregated turnover below $20 million, the refundable R&D tax offset rate is your company’s tax rate plus 18.5%.
Source: ATO
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