Companies must obtain a Provisional Certificate from Innovation Australia (the Board) in advance of undertaking overseas research and development (R&D) activities if they wish to claim a tax deduction under the R&D Tax Concession for expenditure on those activities. As Australia does not have all the necessary R&D expertise and facilities to meet industry needs, up to 10 per cent of the total expenditure that has been incurred or is proposed to be incurred on an R&D project may be claimed under the Tax Concession in respect of overseas R&D activities, provided that advance approval is obtained.
In order to obtain advance approval, the activities concerned must meet the criteria set out in the Industry Research and Development Board (Overseas Research and Development) Guidelines 2004. Companies should note that approval of proposed overseas activities pursuant to these Guidelines does not guarantee that activities will attract the concession. Activities must also meet the other generally applicable requirements for eligibility (such as registration requirements, the definition of R&D activities and exploitation requirements) before deductions will be allowable. Further guidance is available from page 46 - 49 in the 'Guide to the R&D Tax Concession'.
This application form is designed to assist companies to address the criteria in the Guidelines. Once completed, it should be forwarded to any office of AusIndustry with the following attachments:
- a supporting letter from an independent third party confirming that the activities cannot be undertaken in Australia, and
- an approved R&D Project Plan.
Innovation Australia will generally grant or refuse the application within 90 days of lodgement. To receive a copy of the application, requests can be made via rdtaxcon@innovation.gov.au or on (02) 6213 7696. If you have any problems completing the form, please contact the AusIndustry Hotline on 13 28 46 or hotline@ausindustry.gov.au.