Under the R&D incentive, applicants can now obtain an R&D incentive where parts of the R&D activities are conducted overseas, provided certain conditions are met. One condition is that the company must apply to Innovation Australia for an Overseas Finding. The application must be made in the first income year that overseas activities are conducted. Companies with 30 June year ends currently conducting R&D activities overseas must apply by 30 June 2012.
A company can obtain an R&D Incentive on R&D conducted overseas provided the following conditions are met:
- The company receives an advance finding that the activity is an eligible R&D activity.
- The overseas activity must have a significant scientific link to one or more core R&D activities conducted in Australia. The Australian activities must be registered or be reasonably likely to be conducted and registered with Innovation Australia.
- The overseas activity cannot be conducted solely in Australia
because:
- Conducting it requires access to a facility, expertise or equipment not available in Australia;
- Conducting it in Australia would contravene a law relating to quarantine;
- Conducting it requires access to a population (of living things) not available in Australia; or
- Conducting it requires access to a geographical or geological feature not available in Australia.
- The total amount to be spent in all income years on the overseas activities is less than the total amount to be spent on R&D in Australia.
As noted above, the application for an overseas finding must be made in the first income year that overseas activities are conducted.
For a copy of the 'Application for Advance or Overseas Findings' on the AusIndustry website, please click here.
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