|
The R&D Tax Concession is the Commonwealth Government's main mechanism to increase the quantum of core R&D undertaken by Australian business.
Benefit
The Tax Concession Scheme offers the following benefits:
(1) A 125% deduction on eligible investment expenditure relating to R&D activities;
(2) A 175% premium deduction for additional R&D over a 3-year rolling average; and
(3) An option for smaller companies to claim the concession as a rebate (R&D Tax Offset).
The role of administering the concession is divided between:
- the Commissioner for Taxation, who determines the eligibility of the expenditure under the various legislative provisions of the ITAA; and
- the Industrial Research and Development (IR&D) Board, which has legislative responsibility for administration of the Concession and for maintaining the program. Its functions include registration of eligible companies and determination of eligible activities.
How do you access the Tax Concession?
Gaining access to the concession is accomplished in two stages:
(1) registration by the IR&D Board; and
(2) claiming the R&D Tax Concession as part of a tax return.
Annual registration of R&D activities with the IR&D Board is a prerequisite for claiming the Tax Concession. In addition, registration applications must be lodged annually within ten (10) months after the end of the company's year of income.
Before claiming the Concession, companies must satisfy themselves that:
(a) they are registered for that year of income;
(b) they meet the threshold test; and
(c) they have undertaken the R&D on their own behalf.
The TCF Way
TCF Services provides a value-added approach to the R&D Tax Concession. Our specialist assistance and advice ensures maximisation of returns in accordance with legislation.
Our service incorporates assistance with all aspects of the R&D Concession, including: R&D plans; setting up systems to capture eligible expenditure; training; preparation of documents as well as registration and electronic lodgement with the IR&D Board.
TCF Services’ unique approach and value added product offering will ensure that participants in the Tax Concession Scheme maximise their entitlement.
|
