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Income Tax Act 2007

Tax credits paid in cash - Tax credits for R&D tax losses

MX 2: Corporate eligibility criteria

You could also call this:

“Rules for companies to qualify for cash tax credits”

You can get tax credits paid in cash if your company meets certain rules. Your company needs to be based in New Zealand and not be treated as living in another country for tax purposes. It can’t be a school, health organisation, or government agency. Less than half of your company’s shares can be owned by public organisations, local councils, Crown Research Institutes, or State enterprises. Your company also can’t be listed on the stock market. These rules apply for the whole year, or for the part of the year your company exists if it’s not the whole year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6767137.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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MX 1: When subpart applies, or

“This explains when companies can use special tax rules for research and development expenses”

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MX 3: Wage intensity criteria, or

“How much of your wage spending must be on R&D to qualify for tax credits”

Part M Tax credits paid in cash
Tax credits for R&D tax losses

MX 2Corporate eligibility criteria

  1. For the purposes of section MX 1(1)(b), a person meets the corporate eligibility criteria for an income year if, for the income year or for the part of the income year for which the person exists if that is not the whole income year,—

  2. the person is a company that is resident in New Zealand; and
    1. there is no double tax agreement under which the person is treated as being resident in a foreign country or territory; and
      1. the person is not an entity established by or subject to—
        1. the Education and Training Act 2020:
          1. the Pae Ora (Healthy Futures) Act 2022:
            1. the Crown Entities Act 2004; and
            2. a total of less than 50% of the shares in the person are held by entities that are each—
              1. a public authority:
                1. a local authority:
                  1. a Crown Research Institute:
                    1. a State enterprise; and
                    2. the person is not a listed company or otherwise listed on a recognised exchange.

                      Notes
                      • Section MX 2: inserted (with effect on 1 April 2015 and applying for income years beginning on or after that date), on , by section 213(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Section MX 2(c)(i): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                      • Section MX 2(c)(ii): amended, on , by section 104 of the Pae Ora (Healthy Futures) Act 2022 (2022 No 30).