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New Zealand makes good on R&D tax incentive promise

New Zealand makes good on R&D tax incentive promise

WILLING TON: New Zealand can factor in overseas research and development expenses when a new 12.5 percent tax credit takes effect, part of the country’s ambitious plan to attract and boost businesses.

The new research and development incentive will apply to businesses incurring relevant expenditures starting on April 1, 2019. The creation of the incentive was foreshadowed by the Labor Party in the run-up to last year’s election.

The government announced the credit on April 19, just two days after the International Monetary Fund lent its support to the New Zealand government’s post-election promise to work to increase spending on research and development to 2 percent of GDP over 10 years.