Australia: Guidance on claiming research and development tax incentives
Advisory on claiming R&D tax incentives following recent decision of the Federal Court
Advisory on claiming R&D tax incentives following recent decision of the Federal Court
The Australian Taxation Office (ATO) issued an advisory on claiming research and development (R&D) tax incentives following the recent decision of the Federal Court in T.D.S Biz Pty Ltd v. Commissioner of Taxation [2023] FCA 710 (29 June 2023). Read TaxNewsFlash
According to the ATO:
- While companies can claim R&D incentives for expenditure incurred by them on R&D activities conducted overseas, it is subject to rules and limitations, including holding an Advance Overseas Finding for those activities.
- Additionally, to be eligible for R&D incentives, the anticipated expenditure incurred on the overseas activities must be less than the expenditure on Australian activities over the life of the relevant activities.
- Companies seeking to claim R&D incentives can check their eligibility.
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