TaxTrex
TaxTrex

R&D Tax Incentive deadline draws closer

The R&D Tax Incentive can provide generous support in offsetting some of the costs of R&D to help your company undertake R&D activities and develop new products, services and processes.

deadline

As the cut-off for lodgement of R&D Tax claims approaches, companies should now be turning their focus to the preparation and registration of their R&D tax incentive claim for 2015. The deadline for lodging an application for registration is ten months after the end of a company’s income year. Hence, for majority of companies with a standard income period of 1 July 2014 to 30 June 2015, lodgement of their registration with AusIndustry is due by 30 April 2016.

There are a few misconceptions surrounding the R&D Tax Incentive that may prevent some companies from considering themselves eligible to claim.

Many people think the R&D Tax Incentive is only available for companies who conduct experiments in labs, however the fact is that experiments are conducted in a wide range of arenas from laboratories, to mine sites, and even office cubicles. As long as you are creating, or improving, a new product or process which generates new knowledge, you could be eligible for the R&D Tax Incentive.

An important thing to keep in mind is that AusIndustry requires documentation to show the process that you went through in developing your product. This could include photos or drawings of the concept, meeting notes, internal emails and documents. As long as you have documentation to show that what you created was not ‘an accident’, you should be eligible to claim.

Using TaxTrex, Swanson Reed can assist companies in compiling their applications to deliver accurate documentation to meet the 30 April deadline.As the deadline is a little over a month away, it is recommended that businesses check eligibility and seek the advice of an R&D Tax Specialist in order to take advantage of the possible tax benefits.

How can we help you document your activities?

TaxTrex provides tools to manage an R&D claim service in-house from initial assessment to the claim submission. Relevant information necessary for the R&D claim will be:

Relevant information necessary for the R&D claim will be:

  • extracted,
  • time-stamped; and
  • securely stored.