R&D tax incentive claims for the current year ended 30 June 2021 can be lodged anytime from 1 July 2021. Getting organised early and accessing the government’s 43.5% R&D tax incentive cash rebate could provide a vital form of funding to assist your business get past the current COVID-19 situation.
If you can’t wait until after 1 July 2021 there may be an ability to obtain R&D finance now to enable you draw down up to 80% of what you have already spent this year on eligible R&D activities.
If you have conducted R&D activities overseas during the current 2020-2021 financial year you must lodge an application by 30 June to have your overseas activities assessed and potentially approved.
Claims for R&D activities undertaken overseas must be registered and approved by AusIndustry’s Innovation Board, resulting in an ‘Overseas Finding’. Please note, specific criteria are required to be met in order to claim costs incurred on overseas activities.
Payments to associates need to be made by 30 June.
Associates may include shareholders of the company, company directors, and related legal entities such as Trusts. If amounts incurred to associates are not paid prior to 30 June they can be either:
We understand that AusIndustry and ATO review activity will continue to increase over the next 12 months.
The End of the Financial Year is an important time for companies to ensure they have the necessary documentation to support their R&D Tax Incentive claims.
If claims are reviewed, companies must substantiate to AusIndustry and/or the ATO that:
Key focus areas are likely to include the following:
Additional information on R&D Tax Incentive documentation requirements is available below:
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