• Item 1 R&D expenditure - Research service provider (RSP)

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Write at item 1 'R&D expenditure - Research service provider (RSP)' the expenditure you have incurred to an RSP, to the extent that it has been incurred on R&D activities.

    Apportion expenditure between R&D activities and other activities that the company undertakes and show expenditure on R&D activities only at this label.

    Separate the expenditure at item 1 between Australian owned R&D activities (label A) and foreign owned R&D activities (label B).

    In most circumstances, expenditure to an RSP is not subject to the $20,000 notional deduction threshold. You will therefore be able to claim an R&D tax offset for this expenditure, regardless of the amount. However, these rules will only apply where:

    • the RSP is not an associate of the R&D entity
    • the R&D activities are within a research field for which the RSP is registered under the IR&D Act.
    Further Information

    For further information on amounts incurred to a RSP that you can claim see Contract expenditure you incur to a RSP in our guide Research and development tax incentive - amounts you can claim.

    For further information about apportioning your expenditure between R&D activities and non-R&D activities, see Research and development tax incentive - Keeping records and calculating your notional deductions.

    End of further information
    Last modified: 21 Dec 2012QC 26005