NZ R&D Tax Incentive - RDTI

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Stack RDTI + RDLTC for Maximum Cash Benefit

Incentive Rate Key Benefit
RDTI (Research & Development Tax Incentive) 15% Tax credit – often refundable
RDLTC (R&D Loss Tax Credit) – when in tax loss up to 28% Cash refund of losses attributable to R&D
Combined stacking potential up to 43% RDTI + RDLTC when eligible

+ 100% cash refund possible via ARP (especially for retained process IP work)

Understanding RDTI Process

Eligibility Process Overview

IR1240 (May 2025) - page 4

Legal Timeframes

Tax Administration Act 1994 - page 325

R&D Tax Incentive Timeline: FY2026 (Ending 31 Mar 2026)

Key Steps & Deadlines Notes & Requirements
Action No Extension With Extension Details
Eligible Entity Assessment Ongoing
Confirm NZ-resident company performing eligible R&D
Requirement: Meet criteria before claims No specific deadline; assessed in process
Approach: Enrol via myIR anytime Do early for smooth filing
N/A N/A
Assess eligibility first
Optional myIR enrolment
Required for all claims
Tax Year End 31 Mar 2026 31 Mar 2026
Standard balance date
End of FY2026
Triggers subsequent deadlines
GA / CMA Application Required / Optional
General Approval; Criteria & Methods Approval (if spend ≥$3M)
Requirement: GA before SR; CMA optional for certainty Includes prior year (FY2025) supporting activities
Approach: File for first-time claimants ('first year' in Act) Covers pre-core/supporting
30 Jun 2026 30 Jun 2026
Required before SR
3 months after year end
For first-year claims
Income Tax Return 7 Jul 2026 31 Mar 2027
Common extension for R&D claimants with agent
Triggers SR deadline
File before SR
SR / RDTLC Filing Claims Supporting Activities
Supplementary Return; R&D Tax Loss Credit (if in loss)
Requirement: 30 days after income tax due Includes prior year (FY2025) supporting
Approach: File for credit or cash refund After GA approval
6 Aug 2026 30 Apr 2027
30 days after income tax
For cash refund in loss
Claims prior year activities

Core Activities:
Right Level of Detail

Digital Technology Sector Guidance - page 5

Criteria: you own an animal.
Evidence?

Vague Application
Everybody loves Barbar, our top attraction. We focus on best practices and team expertise. Expenses aligned with budget.
Specific Application
Barbar is our elephant—we own him. Daily training: lifts 200kg crates. Treatment logs, feed: 150kg hay daily.

Mars Exploration Programme: The 'right' level of Core R&D Activity

R&D Activities Expenditure
Core Activity Support1: Experimental Design Support2: CFD Design Optimisation Total / Claimable Records & Evidence
Entire Mars Mission ✘ Scope way too broad
Phased Mars exploration mission
Challenge: Establishment of multiplanetary species
No defined scientific or technological uncertainty
Approach: Phased interplanetary mission strategies
No planned steps for experiments or investigation

✘ Not linked to core

✘ Not linked to core

 $500M / $0
Expenditure not traceable
Apportionment not meaningful
No claim
Exploration System Development ~ Significant apportionment required
Develop Mars exploration systems and operational protocols
Challenge: System performance and mission readiness under Mars conditions
Mixed technical and operational uncertainties
Approach: High-level planning supported by validation testing
Systematic investigative approach only for parts

~ Partial (high-level planning)

✘ Not linked to core

 $50M / $3M
Some parts traceable
Apportionment required
Slower process, bad surprises at SR time
Turbopump Design ✔ Clearly eligible core R&D
Design, build and test turbopump systems
Challenge: Understand and optimise flow, thermal and structural limits across design variants
Scientific or technological uncertainty OK
Approach: Comparative evaluation via simulation and physical experimentation
Systematic planned steps to experiment and investigate

✔ Directly linked to core

✔ Directly linked to core

 $4M / $4M
All cost traceable to R&D
No apportionment needed
Full claim
Turbopump Bearing Testing ~ Eligible but limited claim
Test turbopump bearings under variable thermal loads
Challenge: Understand vibration response and fatigue performance
Technological uncertainty OK
Approach: Instrumented testing using accelerometers and strain gauges
Systematic planned approach to experiment

~ Partial (micro-test planning)

~ Partial (bearing-specific CFD)

 $0.5M / $0.5M
Traceable if activity documented
No apportionment if cost tracked
Higher admin, lower claim
Component Cleaning ✘ Operational routine activity
Ultrasonic solvent cleaning of test fixtures and components
Challenge: Maintaining contamination-free test conditions
Operational requirement, not a technological uncertainty
Approach: Established ultrasonic cleaning processes
Standard practice; no experimentation or investigation

✘ Not linked to core

✘ Not linked to core

 $0.05M / $0
No link to R&D activities
Operational expenditure only
Routine task, no claim

RDTI Record Keeping

Keep records proving eligible entity, activities and expenditure — available for IRD review (not submitted with claim).

  • Integrate into existing project logs / timesheets
  • Capture at time of work (contemporaneous)
  • Link every $ to activities (project codes)
  • Apportion fairly + document basis
  • Retain 7 years (accessible format)
  • Involve tech staff + accountant

Source: RDTI Record-keeping Guide (Nov 2025) & IR1240 (IRD, Dec 2025)

DEMO BOARD

Full version: live team collaboration + AI assessor

Questions?

This workshop is freely available without any registration so you can review everything at your own pace.

If you have questions about your specific RDTI claim or would like to discuss how I can support you, feel free to message me or book a call.

I'm often available via live chat during NZ business hours (when I'm not in a meeting).