United States
The notion of ‘research and development’ is often erroneously believed to be only reserved for larger companies or those draped in white coats, yielding test tubes or microscopes. However, previous data analysis has found that small and medium (SMEs) and large firms had similar levels of variation of R&D expenditure. With Turnbull’s rise to the role of Prime Minister, the term ‘innovation’ has become shorthand for all that encompasses future business in Australia.
With this in mind, when it comes to government incentives for smaller and start-up companies, you can’t undervalue the worth of the R&D Tax Incentive for a developing business.
The Research and Development (R&D) Tax Incentive is one route that is obtainable for start-ups and offers companies up to 43.5 cents back for every eligible dollar – even in cases where start-up firms aren’t yet paying tax.
Presently, for business owners who have not applied for the R&D Tax Incentive before, it is a directed, substantial entitlement program that may aid business owners offset some of the costs of doing R&D. The incentive’s purpose is to assist more businesses to do R&D and innovate.
In summary,
- Companies may obtain a 43.5% refundable tax offset – if their aggregated turnover is less than $20 million.
- For aggregated turnover more than $20 million, a 38.5% non-refundable offset can be claimed for notional deductions incurred on eligible activities.
- You must register with AusIndustry prior to lodging your company income tax return and within 10 months of your company’s income year, i.e. 30 April 2016 for a 30 June 2015 income year end.
- It is open to firms in all sectors that are undertaking eligible R&D.
- A company must have notional R&D deductions for an income year of at least $20,000 in order to claim a R&D Tax offset.
For more information about the R&D Tax Incentive contact AusGrant today to find out if you qualify or with any questions you may have.
