Research & Development Tax Incentive

R&D payments to associates

R&D expenditure to associates may only include amounts paid. Amounts accrued, or that are contingent cannot be included until paid. Associates of a company may include significant shareholders or their spouses, for example.
‍
Paying an amount to an associate can include making a constructive payment, where an entity applies or deals with the amount on their behalf or as they direct. The ATO usually only accepts constructive payments for R&D Tax where there is a valid and documented charge going back the other way, which can be netted off against the associate R&D entity charge.

Advanced and Overseas Findings

An advanced finding is a binding decision from AusIndustry about the eligibility of a company’s Australian and overseas activities under the R&D Tax Incentive. It operates similar to a private ruling request that the Australian Taxation Office may provide. It is a prerequisite for claiming R&D activities conducted overseas.

Generally, R&D activities conducted overseas can only be eligible for the R&D Tax Incentive where:

The activity to be conducted overseas has a ‘significant scientific link’ to core R&D activities conducted in Australia.
‍
The expenditure on overseas activities is less than expenditure on Australian core and supporting activities.
‍
The overseas activity cannot be conducted within Australia due to contravention of Australian laws or restricted access to population groups, natural features, or a lack of expertise or facilities in Australia to conduct that activity.

Companies intending to claim overseas costs in a particular year’s R&D claim must submit the activities relating to those costs through an advanced finding by the end of that financial year.

‍

Thank you for submitting your details, now you can download here.

Download Now

Oops! Something went wrong while submitting the form.

Thank you for submitting your details.

Oops! Something went wrong while submitting the form.

Take up this one-time exclusive offer and choose the service and expertise you need to make your SMSF work for you, speak to a specialist today to get started.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

Terms & Conditions:
The promotion is not valid for cash or cash equivalent and is non-transferable. Cannot be combined with other offers, discount promotions or promotions. Promotions may be subject to availability. All monetary amounts specified in these terms and conditions are in Australian dollars (AUD). All pricing excludes GST. To redeem this promotion during the promotional period, you must complete the form submission included in the communication or landing page. Stock Doctor, Bell Direct and Prime reserves the right to modify or amend this promotion and cancel or suspend the promotion without prior notice. By completing the form or attempting to participate in this promotion, you agree to accept and be bound by these terms and conditions from StockDoctor, BellDirect and PrimeFinancial. The promotion from Bell Direct starts on Friday 27th October 2023 at 9:00 am AEDT and ends on Thursday 7th December 2023 at 5:00 pm AEDT. The promotion from Prime starts on Friday 27^th October 2023 at 9:00 am AEDT and ends on Thursday 7^th December 2023 at 5:00 pm AEDT. The promotion includes from StockDoctor: a 30-day complimentary membership to Stock Doctor. The promotion starts on Friday 27th Oct 2023 at 9:00 am AEDT and ends on Sunday 24th December 2023 at 5:00 pm AEDT and $200.00 AUD discount on new members joining Stock Doctor. The promotion starts on Friday 27th Oct 2023 at 9:00 am AEDT and ends on Sunday24th March 2024 at 5:00 pm AEDT.

Disclaimer:
‍This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 ('Prime'). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information. Privacy Policy | Financial Services Guide

Lincoln Indicators Pty Limited (Lincoln) ABN 23 006 715 573, as Corporate Authorised Representative of Lincoln Financial Group Pty Ltd ABN 70 609 751966, AFSL 483167. This communication may contain general financial product advice or forward-looking statements regarding our intent, belief or current expectations with respect to the market conditions. Caution is advised in placing undue reliance on these forward-looking statements, as our advice has been prepared without taking account of your personal circumstances. Therefore, you should consider its appropriateness, in light of your objectives, financial situation and needs, before acting on it. Before acting on any advice, you should consider the appropriateness of the advice, and we recommend you obtain financial, legal and taxation advice before making a decision. Please refer to our Financial Services Guide (FSG) for more information at Lincoln Indicators Pty Ltd. If our advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure Statement (PDS) at Lincoln Indicators Pty Ltd before making any decision.

The Bell Direct service is provided by Third Party Platform Pty Limited trading as "Bell Direct" (ABN 74 121 227 905) an Australian financial services licensee (AFSL 314341) a Participant of the ASX Limited Group and a Trading Participant of Cboe Australia. Bell Direct does not provide investment advice. You should consider your own financial situation, particular needs and investment objectives before acting on any of the information available at https://www.belldirect.com.au/.

Testimonials are provided by third parties for information purposes only and are not intended, and should not be taken to be financial product advice. Please refer to “Terms of Use”, “Important Information”, Terms and Conditions and The Privacy Policy Guide for StockDoctor, BellDirect and Prime for more information.

Contact details:
Email: katea@primefinancial.com.au
Phone: 03 8825 4745

A unique and personal service approach to support all your business advisory and personal wealth management needs.

Start a Conversation

Research & Development Tax Incentive

R&D payments to associates

Advanced and Overseas Findings

Read More Articles

How VCFOs Save SMEs Money

Quality of SMSF Establishment Advice Under Assessment by ASIC

Exploring Investment Opportunities: Victor Smorgon Group In Conversation with Simon Madder

A unique and personal service approach to support all your business advisory and personal wealth management needs.