More than $10 million in research and development loss tax credits have already been paid out after the first year of a scheme designed to help start-up companies access some of their tax losses sooner, Revenue Minister Judith Collins says.
Pay-outs are still being processed for the last financial year, which saw 187 companies successfully lodge applications to `cash out’ business losses associated with R&D spending.
“This has been a tremendous initiative for helping innovative start-up businesses with the cash flow they need to turn their ideas into a reality. I’ve been pleased to see how easy it is to claim the credit,” Ms Collins says.
By following the clearly laid out steps on the website, businesses are spending less time on paper work and more time on developing their product.
“I was delighted to see the difference it made for the two kiwi businesses profiled on the Inland Revenue website.
“These are exactly the sort of companies to help get their big ideas off the ground and the R&D loss tax credit is helping them do that,” Ms Collins says.
Applications are currently open for the 2016/17 financial year. Eligible businesses can claim a credit of up to $224,000.
More information on the R&D loss tax credit along with videos profiling two companies that have benefited can be found at www.ird.govt.nz/rd-credit.