The R&D tax incentive provides a targeted tax offset to encourage certain companies (R&D entities) to conduct R&D activities that benefit Australia 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.
Part E of these instructions will assist you in working out which offset you are entitled to and the amount of R&D tax offset you will be able to claim at item 22 of the Company tax return 2012.
For further information, see:
- Research and development tax incentive - refundable and non-refundable tax offsets
- Research and development tax incentive - grouping for aggregated turnover purposes.