R&D Tax Concession is a broad-based, market driven tax concession which allows companies to deduct qualifying expenditure incurred on R&D activities. The R&D Tax Concession is comprised of four components. A base 125% Tax Concession, the R&D Tax Offset, a 175% Premium Tax Concession and the 175% International Premium Tax Concession.
The Industry Research and Development Board (Overseas Research and Development Activities) Guidelines 2004. The revised overseas guidelines came into effect on 13 May 2004. They have now passed through the parliamentary process and are in full force.
The amendments clarify that the R&D activities undertaken must form part of a larger R&D project in Australia; that the resources necessary to undertake the R&D overseas are not available in Australia; and that the 10% limit applies to expenditure only. The new guidelines also clarify the requirements to be met by firms seeking certification for overseas R&D activities; ensure consistency with the IR&D Act; and generally improve its operation. A full copy of the
guidelines is available.
Information about an
evaluation of the R&D Tax Concession program is available.