Research and Development Tax Incentive Discussion Document
Business Central Letter of Support
Business Central writes to express our support for ExportNZ, ManufacturingNZ and BusinessNZ’s submissions on the Research and Development Tax Incentive consultation. Business Central welcomes the opportunity to submit on the R&D Tax Incentive Discussion Document.
The Government is proposing a system of 12.5 per cent tax refunds on company investment in R&D for expenditure over $100,000 a year. The system would work in tandem with the R&D grants administered by Callaghan Innovation, and would replace the current Callaghan Growth Grants. There are pros and cons from moving away from Growth Grants to an R & D tax credit.
It is of the real importance that we look at how this can best benefit industry and move towards a higher-innovation economy. There’s no question that New Zealand has got to improve our share of R&D - currently, it’s 1.28 percent of GDP, compared to an OECD average of 2.38 per cent.
But of course, it’s always a question of what we do and how we do it. We need to make sure whether a tax incentive system would be easier or harder to navigate than the current system of Growth Grants, especially for small to medium-sized businesses...
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