11 August 2015

Research and Development Tax Incentives for the Australian Biotechnology Sector

As most businesses close another financial year and finalise their accounts and tax returns, it is a great time to consider the tax offsets and refunds available.

If your company has spent money on research and development activities during the year, then your company might be eligible for a Research and Development Tax Incentive.

The Research and Development Tax Incentive is a self-assessment program that is designed to encourage companies to actively engage in research and development. It provides:

• 45% refundable tax offset for eligible entities with an aggregated annual turnover of less than $20 million; or
• 40% non-refundable tax offset for all other eligible entities.

Do you know what your company can claim?

We have listed below some examples of the activities that, in certain circumstances, might qualify:
Literature and knowledge review
Testing and trialling beyond the laboratory
Field trials e.g. testing whether results obtained in a controlled laboratory environment could be replicated in an uncontrolled environment
Clinical trials conducted outside of Australia
Manufacturing activities conducted within and outside of Australia
Phase IV clinical trials e.g. testing the interaction of the developed drug with an existing commercial drug
Production line and processing

The Australian Government has released specific guidance to the Biotechnology sector in terms of identifying and describing eligible research and development activities. The guidance also provides detailed case studies and describes the contemporaneous documentation required to substantiate a Research and Development Tax Incentive claim.

Please click on the link below to access this guidance:

http://www.business.gov.au/grants-and-assistance/innovation-rd/RD-TaxIncentive/Eligibility/Documents/BiotechnologySectorialGuide.pdf

If you would like to know more and if you would like assistance in preparing your Research and Development claim, then please contact Claire Thompson of thomoce on 0407 133 991.


by Claire Thompson of thomoce

1 comment:

  1. These tax offset and tax return can somewhat be important for every research and development over new innovation in the world of science.

    ReplyDelete