Bringing R&D to Australia from Overseas
Australia has one of the most generous R&D tax support programs in the world. Eligible entities and projects can receive a potential cash rebate of 43.5% from their R&D costs.
In general, to receive a tax benefit:
- your R&D project will need to be carried out by an incorporated Australian entity;
- the Australian entity needs to carry out the R&D with the intention of achieving commercial benefits;
- the annual turnover of the Australian entity and other entities it is “grouped” with must be less than $20 million to receive a cash benefit – a non-refundable tax credit applies if grouped annual turnover exceeds $20 million; and,
- R&D activities must meet all eligibility criteria of the R&D tax incentive program.
We believe it is prudent to consider the following key issues before committing to establishing an Australian entity to conduct R&D activities:
- how will the R&D activities be funded?
- what are the relationships between the Australian entity conducting R&D and any overseas-based entities?
- the R&D activities must meet the Australian R&D tax definitions and compliance obligations.
- What documentation and procedures will be managed by the Australian entity?
- special provisions and support apply in some circumstances to R&D activities that are conducted as a clinical trial.
- other Australian administrative and tax compliance obligations.
The benefits of working with Evolv3 Innovation:
- Connected: We have excellent working relationships with a range of local service providers that can facilitate:
- establishing an Australian company;
- attending to Australian corporation and tax lodgements and compliance requirements;
- establishing a local bank account; and
- all aspects of accounting and bookkeeping services.
- Experience: We are registered tax agents with decades of experience advising a broad range of Australian businesses on accessing and complying with the R&D tax incentive.
- Proactive: We are happy to discuss the eligibility of R&D activities and potential to claim an R&D tax benefit with anyone that is considering bringing their project to Australia.
- Relationships: We can partner with your technical, scientific, and finance teams as well as your external tax and technical advisors to co-ordinate the necessary information required to assess and advise on R&D tax eligibility.
- Support: We support our clients throughout the entire process of confirming eligibility, registration, and claiming their R&D tax benefits.
