From the information you’ve given us, it looks unlikely that your company will be eligible for the R&D Tax Incentive. Take a look below to understand why.

What form of business ownership best describes your organisation?
To be eligible to claim the R&D Tax Incentive you must be incorporated as an Australian Company (Example Pty Ltd). You are not eligible for an R&D tax offset if you are an individual, a corporate limited partnership, an exempt entity (where your entire income is exempt from income tax) or a trust (with the exception of a public trading trust with a corporate trustee).

How is your business registered?
You are an R&D entity if you are a corporation that is incorporated under an Australian law, incorporated under a foreign law but an Australian resident for income tax purposes, incorporated under a foreign law and you are both a resident of a country with which Australia has a double tax agreement that includes a definition of 'permanent establishment'; and carrying on business in Australia through a permanent establishment as defined in the double tax agreement.

Is your business a ‘for profit’ entity?
To be eligible for the R&D Tax Incentive, you must be a for-profit company incorporated in Australia. If you are for example a charity set up as a company and undertake research through this entity, you cannot claim the R&D Tax Incentive.

Is your business conducting R&D for commercial purposes?
Whether your planned innovation relates to an entirely new product, or just a smaller part of a service or system, you must undertake R&D to ultimately commercialise your concept in the marketplace.

If you’d still like to discuss how to better manage your chance of eligibility, contact our expert team to discuss your options.