New Zealand is the only one of the seven countries where the tax authority decides eligibility before the claim. General approval is Inland Revenue's confirmation that the activities described are core or supporting R&D activities, granted activity by activity for the income year and, for continuing work, for up to 2 more years. Apply by the last day of the 3rd month after the end of the income year. Without approval there is no credit. This page sets out who needs it, what the application asks and how the decision is made.
What it is
| Element | Rule |
|---|---|
| What is approved | Each core activity and each supporting activity, as described in the application |
| Who applies | Any business claiming the credit that is not using criteria and methodologies approval |
| Deadline | Last day of the 3rd month after the end of the income year |
| Where | The R&D tax incentive account in myIR |
| Duration | The income year applied for and up to 2 following years for the same activities |
| Effect | Binding on Inland Revenue for the eligibility of the approved activities, provided they are carried out as described |
| Does not cover | Whether the activities were performed, the eligibility of the expenditure or the refundability calculation |
| Legal basis | Tax Administration Act 1994, section 68CB; Income Tax Act 2007, subpart LY |
Who it applies to
Every claimant except those with criteria and methodologies approval. First-time claimants, small and medium businesses and anyone with a handful of distinct projects use general approval. It is also the route for a significant performer that prefers certainty on specific activities. Where general approval has been granted for 3 years, a business still files a supplementary return each year, and must apply again, or vary the approval, for new activities that begin in later years.
How it works
- Prepare the activity descriptions. For each core activity: the scientific or technological uncertainty, why it is not deducible by a competent professional from publicly available knowledge, the new knowledge or new or improved process, service or good sought, and the systematic approach (hypotheses, experiments, evaluation). For each supporting activity: the core activity it is required for and integral to, and why.
- Estimate the expenditure for each activity and confirm the NZ$50,000 minimum will be met.
- Submit in myIR by the last day of the 3rd month after the end of the income year. Earlier is better: applying during the year gives certainty before the spend.
- Respond to Inland Revenue's questions. Inland Revenue may seek clarification, further technical detail or a meeting with the technical staff, and assesses each activity against the definition and the schedule 21 exclusions.
- Receive the decision. Activities are approved or declined individually, with reasons for any declined. Inland Revenue aims to decide within a published timeframe.
- Vary if the work changes. Apply to vary the approval before the supplementary return where activities change materially; activities not covered by the approval earn no credit.
- Dispute a decline through the notice of proposed adjustment process if you disagree.
The quality of the application decides the outcome. Descriptions that name the business goal ("develop version 3 of the platform") are declined; descriptions that name the technical unknown and the experiment are approved. The people who did or will do the work should write or closely review them.
Worked example
Illustrative example. Bay of Plenty Horticulture Limited, a hypothetical company with a 31 March balance date, is developing a non-chemical method to control a fungal disease in kiwifruit. In November 2025, during the income year, it applies for general approval with one core activity, described as testing whether a specific sequence of UV exposure and biological agents can reduce infection by 70% in orchard conditions, where published trials show results only in the laboratory, and two supporting activities: establishing control and treatment plots, and building a spore-count monitoring protocol. Inland Revenue asks why the laboratory results do not transfer and the agronomist explains the environmental variables. Approval is granted in February 2026 for the 2026, 2027 and 2028 income years. In 2027 the company adds a second core activity on post-harvest treatment and varies the approval before that year's supplementary return.
Common questions
Can we apply before the year starts? Yes, applications can be made at any time up to the deadline, including before or during the income year.
Does approval guarantee the credit? It settles eligibility of the activities. The expenditure, the performance of the activities and the refundability rules are checked separately.
What if some activities are declined? The approved activities proceed to claim; declined ones can be disputed or left out.
Can an approval be revoked? Yes, where it was based on incorrect information or the activities performed differ materially from those approved.
Related pages
Official sources
Educational content only, not tax advice. See the disclaimer.