Invetus NZ has been granted ‘Approved Research Provider’ (ARP) status under the NZ Government’s R&D Tax Incentive Scheme. The R&D Tax Incentive Scheme aims to increase the amount of R&D done in New Zealand by allowing businesses to claim tax credits on R&D expenditure.
For a business to be able to claim a tax credit on R&D expenditure, it must be based in New Zealand and have eligible R&D expenditure of at least $50,000 in a tax year. However, this minimum spend does not apply if the R&D is contracted out to an ARP – like Invetus NZ.
The R&D Tax Incentive operates as a tax credit and includes the following key features:
· 15% tax credit available from the beginning of a business' 2020 tax year
· Minimum R&D expenditure threshold of $50,000 per year (no minimum threshold applicable if using an ARP)
· $120 million cap on eligible expenditure
· Definition of R&D intended to ensure accessibility across all sectors
· Limited form of refunds in the first year. This will allow some businesses with a tax loss to receive a refund of the tax credit.
With its ARP status, Invetus NZ is pleased to further contribute to increase R&D work conducted in NZ and as Dr Patricia Jaros, Research Leader at ERC, said “this approval means our client base has even more reasons to place their animal, or pre-clinical research with Invetus in NZ.”
For more information about the New Zealand R&D tax incentive, click here.