Guide to the Research and development tax incentive

Self-assessment

The R&D tax incentive operates on a self assessment basis: that is, an R&D entity will assess for itself whether the activities conducted in an income year are eligible R&D activities and the extent to which notional R&D deduction amounts have been incurred on these R&D activities.

The self-assessment system means that you must show all your assessable income and claim only R&D tax offsets to which you are entitled on your annual income tax return. The essence of self-assessment is that the details put on your tax return are usually accepted without query prior to an assessment issuing. However, even though we may initially accept the claims in your tax return, we can later ask you to provide the records and information you used to complete your tax return.

You are responsible for proving the claims you have made in your company tax return and R&D tax incentive schedule. Your company records will be crucial in substantiating your claims. When you sign your tax return you are taking responsibility for the claims you are making. We assume that you have completed your tax return in good faith. If you are aware that your return is incorrect, you must contact us as soon as possible to correct the error.

To help you work out whether or not you are eligible for the tax incentive, you should check the six steps to claiming.

For information about eligibility of R&D activities and registration for the R&D tax incentive, refer to AusIndustry website.

Research and development tax incentive - home

Sections within Claiming the tax offset

• Self-assessment
• Steps to claiming
• Keeping records
• Using a tax agent or R&D consultant