R&D Needs More Backing
Research and development activity could be a major boon for New Zealand, however, this sector receives little to no government support.
According to a new statement issued by the accounting firm Grant Thornton on January 12th, tax incentives for research and development activity conducted in New Zealand could be a major contested point among political parties during this November election.
Incentives for research and development activity came out as the highest priority among business leaders in the country, according to the result of a survey conducted by the accounting firm.
In the newly issued statement it was noted that the government already does have a system to incentivize research and development activity, with a fund which may provide dollar-for-dollar funding to businesses engaged in such activity.
However, many small firms in New Zealand do not have the initial capital backing to make use of the government’s system, meaning that they are effectively not receiving any support at all.
On the other, the Labour Party has a proposed a system whereby businesses could claim back up to NZD 2 back in taxes for every NZD 1 they spend on research and development, although this system could not be implemented until Labour comes into power.
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