R&D Tax Incentive – Overseas Finding

What is an overseas finding

An Overseas Finding is a special provision in the Australian R&D Tax Incentive that allows companies to claim costs for R&D activities conducted abroad, provided they can prove these activities are essential and unavailable within Australia. The overseas expenses must be closely linked to Australian-based R&D and cannot exceed 50% of the total project costs.

Introduction

The Australian government’s R&D Tax Incentive is primarily geared towards domestic research and development activities. However, there are special conditions under which companies can claim expenses incurred from overseas development. These special cases fall under what is referred to as an Advanced Finding or Overseas Finding. While this may seem like an enticing prospect, the government sets high bars to clear before you’re eligible for such a claim. Here’s what you need to know.

Eligibility Criteria

To be eligible for an Overseas Finding, your project must reach a stage where it needs resources that are exclusively available outside of Australia. This could be in terms of:

Professional skill sets
Geographical conditions
Populations
Manufacturing standards and capabilities
Testing conditions

The key here is that the necessity for an overseas finding should not be based on cost alone. AusIndustry won’t consider lower costs in developing countries a valid reason. The overseas component must provide a level of technical expertise or quality that you can’t find in Australia.

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The Proof is in the Pudding

You’ll need to provide a substantial level of evidence to support your claim. These could include:

Desktop Research: Formal background research to prove the non-availability of your needed resources in Australia.
Tender Proposals: Provide evidence that you explored Australian markets and explain why they were not suitable for your project.
Expert Opinion: Letters or documents from experts in your field asserting that the overseas operation is necessary.
Overseas Findings: Documented evidence of what you’ve discovered or achieved overseas.

Claim Conditions

Even if your R&D activities meet the eligibility criteria, there are further conditions you must satisfy:

Australia-centric: Your overseas activities must be closely tied to experiments being conducted in Australia.
50% Test: Your overseas expenses should not exceed 50% of the total project costs. Essentially, at least 51% of your total project costs must be spent in Australia.

The Approval Process

Applying for an Overseas Finding is a more rigorous and time-consuming process than a standard R&D Tax Incentive claim. Be prepared for a stringent review process that scrutinises every aspect of your claim. You need to convincingly prove that your overseas requirements are not met in Australia.

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Possible Outcomes

Once submitted, your application could result in one of four outcomes:

Eligible activities
Ineligible activities
Partially eligible activities
No decision

How Bulletpoint Can Assist

Navigating the intricate labyrinth of R&D tax incentives is no small feat, especially when it involves overseas findings. This is where Bulletpoint comes in. As Melbourne-based consultancy specialists with a decade of experience, we are Australia’s highest-rated R&D tax consultants.

Our approach is straightforward and personable. We cut through the jargon and help you understand the complexities of the R&D tax incentive process in line with government terms. Over the years, we’ve successfully lodged over 500 R&D claims, amassing an average rating of 4.8 stars from over 250 Google reviews.

Our team at Bulletpoint can assist you by:

Claim Evaluation: We help you evaluate if your overseas activities meet the stringent government criteria.
Evidence Preparation: From desktop research to sourcing expert opinions, we guide you in gathering all the necessary evidence.
Application Submission: With us, you get expert oversight on your application to ensure that it meets all the Australian government’s requirements.
Post-Submission Support: We also provide support post-submission, helping you deal with any queries or clarifications from AusIndustry.

We make sure that you not only understand but excel in aligning your perception of R&D with the government’s eligibility criteria. If you’re ready to take the next step in your R&D tax incentive journey with Overseas Findings, book a meeting with us or call 1300 658 508 for a personalised consultation.

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Bulletpoint is a Melbourne-based consultancy specialising in guiding businesses through the complex process of the R&D tax incentive. With a decade of experience under our belt, we’re proud to be led by Australia’s highest-rated R&D tax consultant. We’ve successfully lodged over 500 R&D claims, demonstrating a proven track record.

Our approach is straightforward and personable, focusing on cutting through the jargon to help businesses truly understand the definition of R&D in government terms. We’re passionate about what we do, and our clients appreciate this, often commenting on the difference our expertise has made to their businesses. They’ve praised us for uncovering grants they wouldn’t have otherwise known about and for making the whole process less stressful for them.

We’re proud to have an average rating of 4.8 stars from over 250 Google reviews. Despite our success, we continue to strive for improvement, learning from every piece of feedback we receive.

At Bulletpoint, we excel in helping businesses navigate the complexities of the R&D tax incentive process, ensuring they reap the benefits they deserve. As experts in our field, we’re well-versed in what works and what doesn’t when it comes to aligning businesses’ perceptions of R&D with the government’s eligibility criteria.

So, if you’re looking for accessible expertise and a proven success rate, you’ll find it with us at Bulletpoint. We’re ready to guide you through the R&D tax incentive process with a blend of professionalism and personality, ensuring your experience with us is not just successful, but enjoyable as well.