Moves to broaden R tax incentives for more businesses have been welcomed by BusinessNZ.
The Government has announced a tax incentive for investment in research and development by companies that have yet to
make a profit. A rebate up to the level of their payroll tax paid in the same year will be available for new and
BusinessNZ Chief Executive Kirk Hope said the new incentive, along with Callaghan Project Grants and the current R tax credit, would provide innovation incentives to a broader range of businesses.
"In the past, small start-ups and businesses engaging in the risky process of developing something new were not eligible
for R tax relief if they were not making a profit.
"This new incentive will help foster innovation among currently loss-making businesses and create a fairer scheme for
greater innovation in the New Zealand economy generally."