TAX • 24 AUGUST 2026 • 5 MIN READ
The RDTI claims process
The Research and Development Tax Incentive (RDTI) is a great programme for New Zealand businesses engaging in scientific or technological R&D, offering a 15% tax credit on eligible spending. However, with this comes a lot of paperwork, legalities and compliance requirements.
To make it simple, we’ve broken down the four steps required for claiming the RDTI credit: registering via myIR, applying for activity approval, keeping detailed project and expense records, and filing a supplementary return.
Step 1: Register via myIR
Similar to GST and other tax types, you must register for RDTI with Inland Revenue. This indicates your intention to claim the tax credit.
To register:
- Log into your business myIR account, go to the “I want to” section and select “RDTI enrolment”
- Answer some initial eligibility questions, such as whether you’re a private sector business, likely to spend at least the minimum threshold ($50,000), and will perform the R&D activities in New Zealand.
- The IRD will then confirm eligibility. If confirmed, they’ll provide access to the forms required for step 2.
This step you only have to do once.
Step 2: Apply for R&D activity approval
Once your business is registered, you need to get your specific R&D project approved. This is the technical stage where you prove your project qualifies as genuine R&D.
What to do:
- Complete the General Approval application form*
- Submit the application before the deadline. For a standard 31 March year-end, the deadline is 30th June. If your business has a different year-end, it’s the last day of the 3rd month following your year-end.
- Wait for your application to be assessed. If approved, it may be valid for up to 3 years, including the year in which you applied.
*General Approval is what most businesses apply for, but there is another option called Significant Performer, which requires at least $2 million in annual eligible R&D expenditure and has a different application form.
Information required for General Approval
Since this step is all about proving your R&D activities meet the criteria for RDTI, there is a significant amount of information required.
This includes:
- Project name and a high-level summary of the project’s objectives
- Estimated total spend on eligible R&D
- Project timeline
- What scientific or technological uncertainty you’re trying to solve i.e. why standard industry or public knowledge can’t solve this
- What systematic approach you intend to follow to resolve this uncertainty i.e. what step-by-step method you’ll use to prototype, data model, or experiment
- Who the Competent Professional leading the project is and their qualifications and/or experience i.e. proof that a qualified person looked at the problem and agreed it couldn’t be solved using already-available methods
- List of core vs supporting activities i.e. the actual activities that are being carried out to try and solve the uncertainty and the tasks that relate to or support the core activity, such as sourcing materials or equipment
Application and eligibility support
If this stage feels overwhelming or you’re unsure about anything, there are some great resources available to help.
The official RDTI government website has information on activity eligibility as well as example applications.
They also offer a free support service where a specialist can look over your draft application, answer questions and give feedback before you submit. While their advice isn’t legally binding and doesn’t guarantee approval, it’s a helpful resource if you want some assistance.
Step 3: Keeping detailed records
Once your project is approved, you’re officially able to claim RDTI. With that comes the next lot of compliance obligations.
Inland Revenue requires real-time evidence that your spending matches your R&D activities. You can’t retrospectively update all your records at year-end or rely on guesswork. You must track projects and financial information as you go.
What to do:
- Keep clean project logs at each step of your R&D journey
- Use specific tracking categories in your accounting software to record spending on R&D activities. This should be kept separate from expenditure on business activities that are unrelated to your R&D project
When you submit your final year-end numbers (in step 4), they must seamlessly match your internal project logs. If they don’t, the IRD’s automated filters are likely to flag your claim for a manual review and you may be hit with a bunch of follow-up questions or an audit.
Step 4: File the Supplementary Return (IR1060)
This is the financial phase after year-end where you actually claim the tax credit. This is done alongside your normal income tax return.
The Supplementary Return requires a breakdown of the exact financial information related to your R&D project.
This includes:
- The General Approval reference number that was issued
- Employee labour costs for hours worked on approved R&D activities
- Contractor or third-party spend on R&D
- Costs of raw materials or items used during testing
- Overhead costs such as rent and utilities
- Depreciation on any assets
- Adjustments for ineligible expenditure i.e. costs that are excluded from RDTI claims and portions of costs related to other (not R&D related) business activity
The supplementary return is due within 30 days of your tax return due date. For businesses with a standard 31 March year-end and a tax return deadline of 7th July, this means your supplementary return is due by 6th August. For businesses with extension of time and a 31st March tax return deadline, your supplementary return would be due by 30th April.
How an accountant can help
While the official RDTI website offers great resources for the technical application, pulling together the financials required for the annual supplementary return can be daunting.
This is where an accountant is vital. They can help you manage the claiming side of RDTI and ensure that all the expenses are calculated correctly to maximise the 15% credit without triggering any red flags in Inland Revenue’s systems.
If you’re looking for an accountant that understands the RDTI claims process and what’s required, Beany can help. Get in touch or book a discovery call to discuss your business accounting requirements.
subscribe + learn
Beany Resources delivered straight to your inbox.
Beany Resources delivered straight to your inbox.
Share:
