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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.
Last modified: 21 Dec 2012QC 26005
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.
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