New Zealand abolishes R&D tax relief

 

In a move counter to almost all other countries, the New Zealand government has announced it is abolishing R&D tax relief from the 2009/2010 income year.

The details are contained in a tax bill introduced on December 9 by New Zealand’s new government; the move had been announced in pre-election campaigning.  The particular concern is that most of the relief would be claimed for R&D projects which would have been undertaken in any case, rather than rewarding new R&D.

The relief is very new – introduced only a year ago, no companies in New Zealand have yet been able to claim it; as the abolition is from next year, they will still be able to claim for the short time that the relief exists.

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