Australia, like many other industrialized countries, now offers companies that innovate and invest in research and development very generous R & D Consulting tax incentives. These incentives are aimed at optimizing the R&D processes in order to ensure an economic development and industrial growth model that is innovation-led. There are many strategies that governments, including the Australian government, use to foster innovation in critical areas of industry where they would want to see some growth and leadership. The use of R & D tax incentives is just one component of this and one that is highly effective. However, you still need to properly leverage these incentives in order to get more savings and unlock more resources for R&D. You need professional R&D consulting in order to properly leverage these advantages.
The Importance of the R&D Tax Incentives in Australia
Australia has a relatively high corporate income tax that currently stands at 30%. But this corporate income tax regime also includes an R&D tax incentive component and you need a very professional R & D Consulting provide to help you unlock the various opportunities that are available to help you unlock as much savings as possible. The R&D regime currently takes two main forms in whose brackets you will fall under:
- It can take the forms of the refundable tax credits amounting to up to 45% of your eligible research and development expenditures. This is applicable where the recipient entity has gross receipts of at least $20 million and where the entity is not controlled by exempt entities.
- It can also take the form of a 40% tax credit which is applicable for all the entities that are eligible for the tax incentives.
Do You Meet the Eligibility Criteria?
The eligibility for these tax incentives is typically quite broad and it is important to hire the best R & D consulting professionals to help you understand the complex procedures. The incentives apply to all the entities resident in Australia for the taxation purposes. These can fall under the aegis of the incorporation, control and management or the residency tie-breaker article that is applicable under the Double Taxation Agreement or DTA.
There is also the issue of the eligible or qualifying expenditures for these entities that need the tax incentives. These can include the staffing costs, the supplies, the direct costs of the R&D, overheads, the tax depreciations as well as some types of expenditures that are associated with the R&D. With a professional R & D consulting, you can map out these very clearly and determine your eligibility or design your R&D initiatives in order for you to maximize on these tax incentives.
The tax incentives is typically aimed at the core research and development activities. For many businesses, these are typically the realms of the unknown and involve research and development of products and processes whose outcome is unknown or indeterminable based on the current knowledge. The incentives are aimed at research and development of projects that are aimed at building new knowledge on particular industries. It is important to note that when calculating the eligible expenditures, there are certain expenditures that will be excluded from the tax incentives. You can find R & D consulting professionals in order to help you work out the various expenditures and projects that will help you fully leverage on the tax incentives provided by Australian government when you are planning to invest in innovation.
One of the best R&D consulting companies in Australia that you can count on to help you navigate this complex terrain is Swanson Reed who are specialists R&D taxation advisors. Visit http://www.swansonreed.com.au/r-d-consultants-consulting/.