Research and development tax incentive - overseas R and D

The research and development (R&D) tax incentive provides a targeted tax offset to encourage certain companies to conduct R&D that benefits Australia.

It provides generous benefits for companies performing eligible R&D activities and has the following two core components:

• a 45% refundable tax offset for eligible entities with an aggregated turnover of less than $20 million - unless they are controlled by tax exempt entities
• a 40% non-refundable tax offset for all other eligible entities.

The tax incentive replaces the R&D tax concession and is jointly administered by Innovation Australia (assisted by AusIndustry) and us.

To provide you with information about overseas R&D activities under the tax incentive, AusIndustry has developed a fact sheet. This fact sheet will answer the following questions:

• Can you receive a benefit for R&D conducted overseas?
• Who can apply for an overseas finding?
• What are the conditions for a finding that activities conducted overseas are eligible?
• When should you apply for a finding for activities conducted overseas?
• How do you apply for a finding?
• What is the effect of an overseas finding?
• Where do you go for more information?

For a copy of the fact sheet, visit AusIndustry's website and refer to R&D Tax Incentive.