R&D Tax Loss Cash-Out Deadline Approaching

Understand R&D in New Zealand. Learn about tax incentives & eligibility for businesses. Contact us for expert advice!

If your business is undertaking research and development activities and has a 31 March 2026 balance date, then 30 June 2026 is the final deadline to submit your General Approval (GA) application if you want to claim the R&D Tax Incentive (RDTI) for FY26. This deadline is fast approaching, and it is critical. Without a GA in place, no RDTI claim can be made for the year. Importantly, this deadline is not just for new applications. It also applies where existing approvals need to be updated or expanded to reflect changes in your R&D programme. What Is the R&D Tax Incentive The RDTI is a government initiative that offers a 15% tax credit on eligible R&D expenditure. Its purpose is to support innovation by helping New Zealand businesses offset the cost of developing new or improved products, processes, or technologies. The regime applies to a wide range of industries, including software development, engineering, manufacturing, agritech, life sciences, and more – provided the activities meet the legislative definition of eligible R&D (i.e. they seek to resolve scientific or technological uncertainty through a systematic process). Key features include: 15% tax credit on eligible R&D expenditure Refundable credit for businesses in loss (subject to caps and criteria) Applies to R&D conducted in New Zealand Why You Need a General Approval To claim the RDTI, you must have a General Approval (GA) in place. This application outlines your core and supporting R&D activities and is reviewed and approved by Inland Revenue in advance of making your claim. The GA application requires you to clearly set out: The technical uncertainty being addressed Why the solution was not readily deducible by a competent professional The experimental process undertaken to resolve that uncertainty Having this in place before or during the income year gives your business certainty. You can proceed with your investment in innovation knowing the activities will qualify for the tax credit. If you have not yet submitted a GA application for the 2026 income year, you still have time, but the 30 June 2026 deadline is final for businesses with a 31 March balance date. If approved, the General Approval can apply for up to three years, allowing you to streamline future claims (but only to the extent your activities remain consistent with what was approved). General Approval application deadline for 31 March 2026 year-end: 30 June 2026 Note: If you have a non-standard balance date, your GA deadline may differ. Please contact us to confirm your specific due date. Where Experienced Claimants Still Get Caught Out Even for businesses with prior RDTI experience, we see a number of recurring issues: Scope drift from prior approvals: Projects evolve, but approvals often are not revisited. What was approved in an earlier year may not cover the current iteration of the work. Incomplete coverage of activities: Not all qualifying activities are captured within the GA, resulting in parts of the R&D programme falling outside the approved scope. Blurring of R&D and commercial activity: As projects move toward commercialisation, it becomes critical to clearly isolate the R&D. Framing the uncertainty incorrectly: Even where genuine R&D is occurring, applications can default to describing product outcomes or business challenges rather than technical uncertainty that is not readily deducible. Government grants: This area is currently a minefield with Inland Revenue. The interaction between grants and the RDTI can materially impact eligibility and claim values, and should be addressed upfront. Overseas activities not treated correctly: Activities performed offshore are often not recorded or assessed correctly against the RDTI rules, creating risk around eligibility and supportability of the claim. We work in this space every day. Whether it is identifying gaps in existing approvals, refining uncertainty narratives, dealing with grant interactions, or ensuring offshore activity is treated correctly, we help clients navigate these issues before they become problems. Changes to Existing Approvals: Do Not Assume You Are Covered A common misconception is that once a multi-year GA is in place, nothing further is required. In practice, many businesses need to update or supplement their approval each year. If your R&D activities in FY26 have: shifted in scope or direction, moved from feasibility into scale-up or deployment, incorporated new technologies or methodologies, or introduced new areas of uncertainty, then your existing GA may no longer fully cover the work being undertaken. In those cases, an updated or additional GA submission is required, and must also be filed by 30 June 2026. We recommend reviewing your existing General Approval before 30 June to confirm it still reflects your FY26 R&D activities, and whether any updates or a new application is required. We can assist with that review and ensure any required changes are identified and filed on time. How We Can Help We are a specialist R&D tax team with deep experience in New Zealand’s RDTI regime. We work with clients across software, engineering, biotech, and advanced manufacturing, and regularly support claims involving complex technical and eligibility issues. Our clients choose us for our: Technical depth and understanding of IRD’s eligibility criteria Ethical, fixed-fee pricing model – no % of your claim Flexible, low-touch process, so you can stay focused on growing your business Whether you need end-to-end support or just help with the General Approval, we can tailor our involvement to suit your needs. We will handle the complexity, engage with your team as required, and ensure your application is accurate, compliant, and optimised for success. If you think your business may qualify for the RDTI but have not yet submitted your General Approval, contact us today. We will help you assess eligibility, prepare your application, and unlock the full benefit of the incentive. Disclaimer: The information provided in this article is general in nature and does not constitute personalised tax advice. You should consult with a qualified tax adviser familiar with both US and NZ tax systems before making any decisions based on this content.

The Deadline is Approaching for FY25 General Approval Applications