Approval comes before the claim. Apply for general approval by the last day of the 3rd month after the end of the income year, or for criteria and methodologies approval if you are a significant performer. Complete the income tax return for the year. Then file the supplementary return within 30 days after the income tax return due date, or the extension of time due date. Everything is done through Inland Revenue's myIR service. This page follows the steps.
Before you start
- Check the entity and the minimum. A business in New Zealand with at least NZ$50,000 of eligible expenditure for the year, unless an approved research provider does the work.
- Frame the activities. Identify each core activity by its scientific or technological uncertainty and the new knowledge sought, and each supporting activity by the core activity it serves. Approval is granted activity by activity.
- Choose the approval route. Most businesses apply for general approval. A significant performer, with eligible expenditure expected to exceed NZ$2 million, may instead apply for criteria and methodologies approval; see the significant performer page.
- Set up myIR access. The RDTI applications and the supplementary return are filed in the R&D tax incentive account in myIR.
- Start the records now. Approval describes what you intend to do; the claim must show that you did it and what it cost.
- Check the refundability position. If the credit will exceed the year's income tax, estimate the labour-related tax cap so the cash outcome is known before the year ends.
Step by step
- Apply for general approval. By the last day of the 3rd month after the end of the income year, describe each core and supporting activity, the uncertainty, the new knowledge and the systematic approach, and estimate the expenditure. Inland Revenue assesses the activities and issues a decision; approval can cover up to 3 income years for continuing activities.
- File the income tax return for the year by its due date, which for most businesses with a tax agent is 31 March of the following year under the extension of time arrangements.
- File the supplementary return within 30 days after the income tax return due date, or the extension of time due date. It reports the eligible expenditure for each approved activity, the credit, and the refundability calculation. The supplementary return page walks through it.
- Receive the credit. The credit reduces income tax for the year; any excess is refunded to the extent the refundability rules allow, and the remainder is carried forward.
- Keep the records for 7 years.
Forms and channels
| Step | Channel | Deadline |
|---|---|---|
| General approval application | myIR, R&D tax incentive account | Last day of the 3rd month after the end of the income year |
| Criteria and methodologies approval application | myIR | The last day of the 6th month before the end of the first income year it relates to; see the criteria and methodologies page |
| Income tax return (IR4 for companies) | myIR or tax agent software | 7 July, or the extension of time date |
| R&D supplementary return | myIR | Within 30 days after the income tax return due date |
| Variation of an approval | myIR | Before the supplementary return where activities changed |
| Refund | Paid to the bank account in myIR | After the supplementary return is processed |
After filing
Processing. Inland Revenue processes the supplementary return, applies the credit against the year's income tax and pays any refundable excess. Inland Revenue may review the return before paying, and may ask for the records behind the expenditure. The credit and any refund appear in the income tax account in myIR once processed.
Reviews. Approval settles that the activities are eligible, provided they were carried out as described. Inland Revenue can still review whether the activities were performed, whether the expenditure was incurred on them and whether the calculation is right, and can revoke an approval obtained on incorrect information. The reviews page describes the process.
Amendments. A supplementary return can be corrected within the time bar, generally 4 years from the end of the year in which the return was filed, but the credit cannot be claimed for activities that were not approved.
Illustrative example
Illustrative example. Hawke's Bay Robotics Limited, a hypothetical company with a 31 March 2026 balance date and a tax agent, claims for the first time.
| When | What Hawke's Bay does |
|---|---|
| April 2025 to March 2026 | Carries out the R&D; engineers log time by activity and keep experiment records |
| By 30 June 2026 | Applies for general approval of one core and two supporting activities in myIR |
| September 2026 | Receives approval for the 2026 and 2027 income years |
| By 31 March 2027 | Files the IR4 return under the extension of time |
| By 30 April 2027 | Files the supplementary return: eligible expenditure NZ$600,000, credit NZ$90,000 |
| Mid 2027 | Credit applied against tax; the excess refunded within the refundability cap |
| To 2034 | Records retained |
Had Hawke's Bay missed 30 June 2026, there would have been no approval and no credit for the year.
Related pages
Official sources
Educational content only, not tax advice. See the disclaimer.