Glossary

This glossary defines the terms used by the seven R&D incentive schemes covered on this site: the United States, the United Kingdom, Ireland, Canada, Australia, New Zealand and Singapore. Each term carries a tag naming the country whose scheme uses it, or All for a term that applies everywhere. Country terms are defined in that scheme's own wording, because the same idea often has a different name and a different boundary in each country, and every definition ends with a link to the page where the term is explained in context. Terms tagged All use neutral wording that holds for every scheme, and link to the guide or module that deals with them.

A

Accounting test Ireland

Revenue's test of the expenditure side of a claim. Revenue expects contemporaneous documentation for the accounting test, including timesheets or equivalent records, invoices and a reconciliation of the claim to the accounts. See Documentation: Ireland.

Additional information form United Kingdom

Every claim needs an additional information form that describes the R&D projects and breaks down the qualifying costs. It is required for all R&D claims submitted on or after 8 August 2023, regardless of the accounting period, and if it is not submitted before the Company Tax Return, HMRC will remove the R&D claim from the return. See Additional information form: United Kingdom.

Advance Finding Australia

A binding decision on the eligibility of activities. An application for an Advance Finding must be made before the end of the income year in which the activities are conducted. An Advance Finding applies to the income year in which the application is made and the following two income years, and binds the Commissioner of Taxation for the purposes of the R&D tax offset provided the activities are carried out in accordance with the application. See Advance and overseas findings: Australia.

Advance in science or technology United Kingdom

An advance in overall knowledge or capability in a field of science or technology, not a company's own state of knowledge or capability alone. A project qualifies if it seeks an advance in science or technology by resolving scientific or technological uncertainty. See Eligibility: United Kingdom.

Aggregated turnover Australia

The annual turnover of the R&D entity plus the annual turnover of entities connected with it and its affiliates, including foreign entities, for the income year. It decides which offset applies: the refundable offset for aggregated turnover under A$20 million, the non-refundable offset for aggregated turnover of A$20 million or more. See Refundable vs non refundable: Australia.

Alternative simplified credit (ASC) United States

One of the two ways to compute the research credit: 14% of qualified research expenses above 50% of the average for the previous three years. If the taxpayer has no qualified research expenses in any one of the three preceding tax years, the alternative simplified credit is 6 percent of the current year QREs. A lower rate of 11.06% applies if the reduced credit is elected under section 280C(c). See ASC vs regular method: United States.

Apportionment All

Dividing a cost between the R&D work and other work, by time for staff and by use for assets, on a reasonable and consistent basis supported by records made at the time. Each scheme sets its own rules on which costs may be apportioned and what records support the split. See Module 3: Staff time apportionment.

Approved research provider New Zealand

A person approved by the Commissioner to perform R&D on behalf of others. Expenditure on an approved research provider is not subject to the NZ$50,000 minimum. See Eligibility: New Zealand.

Australian Taxation Office (ATO) Australia

Administers the claim side of the R&D Tax Incentive. The ATO reviews the expenditure and the calculation of the offset, and may refer questions about the eligibility of registered activities to the department for a finding. See ATO and DISE reviews: Australia.

B

Benefit All

What a scheme gives for eligible costs: a credit against tax, a tax offset or an enhanced deduction, which in some countries can be paid out in cash where there is no tax to set it against. The form, rate and refundability of the benefit differ by country. See R&D incentives by country.

Business component United States

The unit of analysis for the four-part test: a product, process, technique, formula, invention or piece of software, not the company as a whole. The test is conjunctive: failing any single part means the activity does not qualify. See Four-part test: United States.

C

Canada Revenue Agency (CRA) Canada

The agency that administers the SR&ED program. The CRA risk-assesses each SR&ED claim on receipt and either accepts it as filed or selects it for a financial review, a technical review or a coordinated review. See Canada: SR&ED tax incentives.

Canadian-controlled private corporation (CCPC) Canada

A private corporation that is a Canadian corporation and is not controlled, directly or indirectly in any manner whatever, by one or more non-resident persons, public corporations or a combination, and whose shares are not listed on a designated stock exchange. The enhanced 35% credit is for most CCPCs, and a corporation must be a CCPC throughout the tax year to earn the enhanced credit for that year. See CCPC enhanced refund: Canada.

Cash payout option Singapore

Optional conversion of part of the expenditure into cash: 20% of up to S$100,000 of qualifying expenditure across EIS activities, so up to S$20,000 per Year of Assessment. No refund of the deduction itself. The option needs at least three full-time local employees (Singapore Citizens or Permanent Residents with CPF contributions), each earning a gross monthly salary of at least S$1,400 employed for six months or more in the basis period. An approved cash payout election is irrevocable. See Cash payout option: Singapore.

Claim All

The filing that asks the tax authority for the benefit. It is made in or with the tax return and, in some countries, only after a registration or approval step has been completed. See Module 4: The claim lifecycle.

Claim notification United Kingdom

Required if you are claiming for the first time or your last claim was more than 3 years ago, within 6 months of the end of the period of account. The requirement applies to accounting periods beginning on or after 1 April 2023. Where a claim notification is required and is not made within the claim notification period, the company is not entitled to make an R&D claim for the accounting period. See Claim notification: United Kingdom.

Claim Review Manual Canada

The CRA manual for Research and Technology Advisors. It instructs them to base eligibility determinations on the supporting evidence provided and to consider whether it was generated at the time the work was performed, and requires the RTA to communicate preliminary findings to the claimant and provide an opportunity to present additional information before finalising the SR&ED review report. See CRA reviews: Canada.

Clawback adjustment Australia

Where an R&D entity receives a recoupment from an Australian government agency for expenditure on which it has claimed the R&D tax offset, a clawback adjustment includes in assessable income an amount calculated so as to remove the premium benefit of the offset on the recouped expenditure. See Eligible expenditure: Australia.

Competent professional All

The experienced practitioner in the relevant field against whom technical uncertainty is judged. If such a person could readily work out whether something is possible or how to achieve it from available knowledge, there is no uncertainty for the scheme to recognise. See Module 2: Identifying uncertainty.

Compliance check United Kingdom

HMRC's review of a claim. HMRC selects R&D claims for compliance checks on a risk basis using the information on the additional information form and other data. HMRC information requests in a compliance check usually set a 30 day deadline, which can be extended on request. See HMRC compliance checks: United Kingdom.

Compliance intervention Ireland

Revenue's framework for reviewing claims. The Code of Practice for Revenue Compliance Interventions provides for Level 1 compliance support interventions, Level 2 risk reviews and audits, and Level 3 investigations, with different consequences for the taxpayer's ability to make a qualifying disclosure. Revenue selects claims for compliance interventions on a risk basis. See Revenue audits: Ireland.

Contingent fee All

A fee calculated as a share of the benefit obtained rather than for the work done. Rules on contingent fees for tax work differ by jurisdiction and professional body. See Module 7: Ethics, integrity and fee arrangements.

Contract research expenses United States

65% of amounts paid for qualified research performed for you. A contract research expense requires an agreement entered into prior to the performance of the research, under which the research is performed on behalf of the taxpayer and the taxpayer bears the expense even if the research is not successful. Contract research expenses qualify only to the extent the research is conducted within the United States. See Qualified research expenses: United States.

Contracted out R&D United Kingdom

R&D is contracted out where a company engages another person to undertake activities, and it is reasonable to assume that the company intended or contemplated that R&D of that sort would be done to meet its requirements. 65 percent of payments to an unconnected subcontractor for contracted out R&D qualify. For accounting periods beginning on or after 1 April 2024, relief for contracted out R&D and externally provided workers is generally limited to work carried out in the UK. See Subcontracting and overseas costs: United Kingdom.

Core R&D activities Australia

Experimental activities whose outcome cannot be known in advance from current knowledge. They follow a systematic progression of work, from hypothesis to experiment, observation and evaluation, leading to logical conclusions, and are conducted to generate new knowledge. A registration must include at least one core R&D activity. See Core vs supporting activities: Australia.

Core R&D activity New Zealand

An activity that is conducted using a systematic approach, has a material purpose of creating new knowledge or new or improved processes, services or goods, and has a material purpose of resolving scientific or technological uncertainty, and is not an excluded activity. See Eligibility: New Zealand.

Criteria and methodologies approval New Zealand

An alternative to general approval for significant performers. It covers the criteria the applicant will apply to determine whether activities are core or supporting R&D activities and the methodologies for calculating eligible expenditure, and may be granted for up to 3 income years. Applications are due on the last day of the 6th month before the end of the first income year they relate to. See Criteria and methodologies approval: New Zealand.

D

Department of Industry, Science and Resources Australia

Administers registration, on behalf of Industry Innovation and Science Australia. The department may examine registered activities and make findings about their eligibility under section 27J of the Industry Research and Development Act 1986, and those findings bind the Commissioner of Taxation. See Registration with AusIndustry: Australia.

E

Eligible costs All

The categories of expenditure a scheme allows into the claim, commonly staff costs, materials consumed in the work and a share of payments for work done by others, each linked to the qualifying work. Each country defines and limits its own categories. See Module 3: Eligible costs.

Enhanced deductions Singapore

400% deduction on the first S$400,000 of staff costs and consumables for qualifying R&D carried out in Singapore, each Year of Assessment from YA 2024 to YA 2028. Expenditure above that gets 250%, made up of the 100% base deduction and a 150% additional deduction. See Enhanced deductions: Singapore.

Enhanced R&D intensive support (ERIS) United Kingdom

Relief for loss-making SMEs that meet the R&D intensity condition: an extra 86% deduction (a total deduction of 186%), and a payable credit worth up to 14.5% of the surrenderable loss. The maximum ERIS cash benefit is 26.97 percent of qualifying expenditure. See ERIS R&D intensive SME: United Kingdom.

Enquiry United Kingdom

HMRC's formal check into a Company Tax Return. For most companies, HMRC can open an enquiry within 12 months of the date the return was delivered; for members of large groups, within 12 months of the filing date. Different time limits apply to late returns. See Reviews and audits: United Kingdom.

Enterprise Innovation Scheme (EIS) Singapore

The scheme under which Singapore gives enhanced tax deductions for qualifying R&D, with an option to convert part of the expenditure into a cash payout. The Enterprise Innovation Scheme was announced in Budget 2023 for the Years of Assessment 2024 to 2028 and applies to all businesses, including sole proprietorships, partnerships and companies. See Enterprise Innovation Scheme: Singapore.

Examination United States

The Internal Revenue Service's review of a return. Research credit claims can be selected for examination through the IRS's normal return selection processes, and IRS examiners are directed to test contemporaneous documentation, the basis of wage allocations and the consistency between technical narratives and financial records. The general period for assessment is three years after the return is filed. See Reviews and audits: United States.

Excluded activities (schedule 21) New Zealand

Schedule 21 lists activities excluded from being core activities, and a shorter list excluded from being supporting activities. It excludes from core activities preproduction activities such as demonstration of commercial viability, tooling up and trial runs, and developing, modifying or customising software for the purpose of internal administration of the business, such as payroll and accounting systems. See Eligibility: New Zealand.

Expenditure limit Canada

The amount of qualified expenditure on which the enhanced rate applies: C$6 million a year, for tax years beginning after 15 December 2024. The expenditure limit is allocated among associated corporations and is phased out where the associated group's taxable capital employed in Canada for the preceding year is between C$15 million and C$75 million. CCPCs may instead elect to calculate the expenditure limit using the same average gross revenue phase-out (C$15 million to C$75 million) that applies to eligible Canadian public corporations. See CCPC enhanced refund: Canada.

Expert consultation Ireland

Revenue may consult any person it considers has expertise in the field to determine whether the activities are research and development activities, and must inform the company before doing so. The expert reports on whether, in the expert's opinion, the activities meet the definition of research and development activities, and Revenue makes its determination taking the report into account. See Revenue audits: Ireland.

Externally provided workers (EPWs) United Kingdom

Workers supplied by a staff provider. 65 percent of payments to an unconnected staff provider for externally provided workers qualify; where the provider is connected, the lower of the payment and the provider's relevant expenditure, by election. Externally provided worker costs qualify only where the worker's earnings are subject to PAYE and Class 1 National Insurance, or an exception applies. See Subcontracting and overseas costs: United Kingdom.

F

Feedstock adjustment Australia

Where R&D activities produce marketable products, a feedstock adjustment adds an amount to assessable income that reduces the benefit on the feedstock inputs used. Feedstock inputs are goods or materials, and energy, transformed or processed during R&D activities in producing marketable products; expenditure on labour and overheads is not feedstock expenditure. See Associates and feedstock: Australia.

Form 6765 United States

The form on which the research credit is claimed with the tax return. It has Sections A (regular credit), B (alternative simplified credit), C (current year credit), D (qualified small business payroll tax election), E (other information), F (qualified research expenses summary) and G (business component information). See Form 6765: United States.

Form C-S and Form C Singapore

The corporate income tax returns. R&D deductions are claimed in the corporate income tax return, Form C-S or Form C, with the tax computation and supporting schedules showing the section 14C and 14D amounts. The corporate income tax return filing due date is 30 November of the Year of Assessment. See How to claim: Singapore.

Form CT1 Ireland

The corporation tax return. The R&D credit is claimed in the research and development panel of the Form CT1, which records qualifying expenditure, the credit claimed and the treatment of each instalment. A corporation tax return is due by the 23rd day of the ninth month after the end of the accounting period where filed electronically, and the R&D credit claim must be made within 12 months of the end of the accounting period. See How to claim: Ireland.

Form T661 Canada

The form that describes the SR&ED work and calculates the expenditure. Part 2 asks for each project: the scientific or technological uncertainties attempted to be overcome (line 242, up to 350 words), the work performed to overcome them (line 244, up to 700 words), and the scientific or technological advancements achieved or attempted (line 246, up to 350 words). Corporations calculate the credit on Schedule 31. See Form T661: Canada.

Four-part test United States

The US definition of qualified research, in section 41(d). Research qualifies only if it passes all four parts: the costs must be eligible to be treated as research or experimental expenditure under section 174; the work must be undertaken to discover information that is technological in nature; that information must be intended to be useful in developing a new or improved business component; and substantially all of the activities must be elements of a process of experimentation. See Four-part test: United States.

Funded research United States

An exclusion from qualified research. Research is funded if payment to the taxpayer is not contingent on the success of the research, or if the taxpayer does not retain substantial rights in the research. Research is funded only to the extent of the funding; qualified research expenses in excess of the amount funded may still qualify. See Funded research exclusion: United States.

G

General approval New Zealand

Approval comes before the claim. Apply for general approval by the last day of the 3rd month after the end of the income year. General approval may be granted for the income year of the application and up to 2 following income years for activities that continue, and binds the Commissioner as to the eligibility of the approved activities to the extent the activities are performed in accordance with the application. See General approval: New Zealand.

Grant All

Public funding for a project. Schemes differ in whether grant-funded expenditure can also be claimed, is excluded to the extent of the grant, or is adjusted for afterwards, so the interaction is checked for each country before the claim is prepared. See Module 5: Grants and subsidised expenditure.

H

HM Revenue and Customs (HMRC) United Kingdom

The authority that administers the merged scheme and ERIS. HMRC applies the government's guidelines on the meaning of R&D for tax purposes. See United Kingdom: Merged RDEC scheme and ERIS.

I

Inland Revenue New Zealand

Administers the Research and Development Tax Incentive. Inland Revenue selects claims for review on a risk basis and may engage external technical experts to assist in assessing whether activities meet the definition of core and supporting R&D activities. See Inland Revenue reviews: New Zealand.

Inland Revenue Authority of Singapore (IRAS) Singapore

Administers the R&D tax deductions and the Enterprise Innovation Scheme. IRAS can ask for project documents when it reviews a claim, and may seek the views of technical experts in assessing whether a project involves novelty or technical risk. See IRAS requirements: Singapore.

Instalments Ireland

The credit is paid in three instalments. The first is the greater of 50% of the claim or a fixed threshold: €75,000 for periods commencing on or after 1 January 2025 that end before 31 December 2026; €87,500 where the 35% rate applies. The second instalment is three fifths of the credit remaining after the first instalment, and the third is the balance. The company elects whether each instalment is offset or repaid. See Payable credit instalments: Ireland.

Internal Revenue Service (IRS) United States

The agency that administers the federal income tax credit for increasing research activities under section 41 of the Internal Revenue Code. The credit is claimed on Form 6765 with the tax return. See United States: Research credit.

Internal use software United States

Software developed for use in general and administrative functions, defined as financial management functions, human resource management functions and support services functions. It qualifies only if it satisfies the high threshold of innovation test: the software is innovative, the development involves significant economic risk, and the software is not commercially available for use by the taxpayer. See Internal use software: United States.

Investment tax credit (ITC) Canada

The SR&ED benefit, alongside a deduction against income. Enhanced rate of 35% on qualified expenditure up to the expenditure limit, for most CCPCs and, for tax years beginning after 15 December 2024, eligible Canadian public corporations. Basic rate of 15%. For most CCPCs at the enhanced rate, current expenditure is 100% refundable and capital expenditure 40% refundable, up to the limit. Unused credits can be carried back 3 years or forward 20 years. See Canada: SR&ED tax incentives.

K

Knowledge Development Box (KDB) Ireland

A separate relief on income from qualifying assets. For accounting periods commencing on or after 1 October 2023, the Knowledge Development Box gives an effective rate of 10 percent on qualifying profits. Qualifying expenditure for the KDB is expenditure on R&D activities wholly and exclusively incurred by the company or paid to unconnected persons, using the section 766 definition of R&D activities. A claim must be made within 24 months of the end of the accounting period. See Knowledge development box: Ireland.

M

Merged R&D expenditure credit scheme United Kingdom

For accounting periods beginning on or after 1 April 2024, most companies claim under the merged R&D expenditure credit scheme. The expenditure credit is 20 percent of qualifying expenditure and is taxable. Notional tax on the credit is deducted at the main rate (25 percent) for companies paying the main rate, giving a net benefit of 15 percent, and at the small profits rate (19 percent) for loss-making companies and companies paying the small profits rate, giving a net benefit of 16.2 percent. See Merged scheme: United Kingdom.

myIR New Zealand

Inland Revenue's online account. General approval applications, criteria and methodologies applications and supplementary returns are filed through the research and development tax incentive account in myIR. See How to claim: New Zealand.

N

Non-refundable R&D tax offset Australia

Corporate tax rate plus 8.5% (R&D intensity up to 2%) or 16.5% (above 2%), for aggregated turnover of A$20 million or more. An unused non-refundable R&D tax offset is carried forward and may be applied in later income years, subject to the tax offset carry forward rules and continuity of ownership or business tests. See Refundable vs non refundable: Australia.

Notional deductions Australia

An R&D entity can notionally deduct expenditure incurred during the income year on registered R&D activities, to the extent the expenditure is incurred on those activities. Expenditure that is notionally deducted under Division 355 cannot also be deducted under another provision, so the tax offset replaces the deduction. Notional deductions above the A$150 million threshold attract an offset equal to the company tax rate, giving no net benefit. See Eligible expenditure: Australia.

Novelty Singapore

One of the three requirements IRAS applies from the definition of R&D. IRAS describes novelty as something that is new in the field rather than new to the business. See Eligibility: Singapore.

O

Overseas Finding Australia

R&D activities conducted outside Australia are eligible only where covered by a finding under section 28C of the Industry Research and Development Act 1986 that the activity has a significant scientific link to Australian core activities, cannot be conducted in Australia for a listed reason, and the expenditure on overseas activities is less than the expenditure on Australian activities. See Advance and overseas findings: Australia.

P

PAYE cap United Kingdom

The limit on payable credits: £20,000 plus 300% of the company's relevant PAYE and National Insurance liabilities. A company is exempt from the PAYE cap if its employees are creating, preparing to create or actively managing intellectual property and its expenditure on connected party EPWs and subcontractors is no more than 15 percent of its qualifying expenditure. See Merged scheme: United Kingdom.

Payroll tax offset United States

The qualified small business payroll tax election. Qualified small businesses can elect to apply up to US$500,000 a year against payroll tax, using Form 8974. The election is made on a timely filed original return, including extensions, and may not be made for more than five taxable years. A qualified small business is a corporation or partnership with gross receipts of less than 5 million US dollars for the taxable year and no gross receipts for any taxable year preceding the five-taxable-year period ending with the taxable year. See Payroll tax offset: United States.

Pre-claim approval Canada

Optional pre-claim approval has been available since 1 April 2026, to have planned work assessed before you incur most of the cost. It gives a determination on the eligibility of planned SR&ED work that the CRA will honour where the work is carried out as described in the application. See How to claim: Canada.

Pre-filing notification Ireland

Companies claiming for the first time, or that have not claimed in the previous 3 years, must notify Revenue in advance, at least 90 days before the claim, using a prescribed form. The notification is made through Revenue Online Service and must include the company's details, a description of the R&D activities and the accounting period for which the claim will be made. A claim made without the required pre-filing notification is not a valid claim. See How to claim: Ireland.

Proxy method Canada

A way of claiming overhead through the prescribed proxy amount, which is 55 percent of the salary base, being the salary or wages of employees directly engaged in SR&ED, subject to the specified employee limits and an overall cap. The prescribed proxy amount is included in qualified expenditures for investment tax credit purposes but is not an SR&ED expenditure deductible under section 37. The election to use the proxy method is made on Form T661 and, once made, is irrevocable for that tax year. See Proxy vs traditional method: Canada.

Q

Qualified research expenses (QREs) United States

Wages, supplies and 65% of contract research costs, linked to the qualifying work. Wages means wages as defined in section 3401(a), the amount subject to income tax withholding. Supplies means any tangible property other than land or improvements to land and property subject to depreciation. See Qualified research expenses: United States.

Qualifying building (section 766A) Ireland

The credit under section 766A applies to relevant expenditure on the construction or refurbishment of a qualifying building, being a building or structure in respect of which industrial building allowances are available. The building must be used for research and development activities to the extent of at least 35 percent over a specified period of 4 years. See Buildings and plant: Ireland.

Qualifying R&D activities Ireland

Systematic, investigative or experimental activities in a field of science or technology. They must be basic research, applied research or experimental development, must seek to achieve scientific or technological advancement, and must involve the resolution of scientific or technological uncertainty. See Eligibility: Ireland.

R

R&D claim form Singapore

IRAS requires an R&D claim form for larger R&D claims, giving project descriptions and a breakdown of expenditure; check IRAS guidance for the current threshold. Smaller claimants should keep the same information on file. See IRAS requirements: Singapore.

R&D corporation tax credit Ireland

Ireland's R&D corporation tax credit gives companies a credit against corporation tax for qualifying R&D expenditure. Credit that cannot be used can be paid out in three instalments. Rate: 30% of qualifying expenditure for accounting periods beginning on or after 1 January 2024. 35% where the corporation tax return filing date is on or after 23 September 2027, which typically means accounting periods ending on or after 31 December 2026. See Ireland: R&D corporation tax credit.

R&D intensity Australia

The R&D entity's notional deductions for the income year divided by its total expenses for the income year, with total expenses taken from the company's accounts as reported in the tax return. The intensity premium is applied marginally: notional deductions up to the amount that equals 2 percent of total expenses receive the 8.5 point premium and the excess receives the 16.5 point premium. See R&D intensity: Australia.

R&D intensity condition United Kingdom

The ERIS condition: loss-making SMEs whose relevant R&D expenditure is at least 30% of total relevant expenditure. The intensity ratio is relevant R&D expenditure divided by total relevant expenditure, both measured across the company and its connected companies. The threshold was 40 percent for the enhanced SME relief for expenditure from 1 April 2023 and reduced to 30 percent for accounting periods beginning on or after 1 April 2024. See ERIS R&D intensive SME: United Kingdom.

R&D organisation Singapore

A provider to which R&D is outsourced. For R&D outsourced to an R&D organisation in Singapore, IRAS treats a fixed portion of the fee (60 percent) as qualifying staff costs and consumables. See R&D done in Singapore vs overseas: Singapore.

R&D Tax Incentive Australia

Australia's R&D Tax Incentive gives companies a tax offset for eligible R&D expenditure. It is jointly administered by the Department of Industry, Science and Resources, on behalf of Industry Innovation and Science Australia, and the Australian Taxation Office. You must spend at least A$20,000 on eligible R&D in the income year, unless you use a research service provider or contribute to the Cooperative Research Centres Program. See Australia: R&D Tax Incentive.

Records made at the time All

Documents created while the work was being done, such as plans, test records, results and time records, rather than reconstructed afterwards. Reviewers in every country look for them first. See Contemporaneous documentation: what reviewers actually look for.

Refundability cap New Zealand

The refundable amount of the R&D tax credit for an income year is the credit remaining after offset against income tax, limited to the refundability cap. The refundability cap is the total of the person's PAYE, employer superannuation contribution tax and fringe benefit tax for the year, with adjustments for wholly owned groups, under the rules that apply from the 2020-21 income year. See Refundability: New Zealand.

Refundable R&D tax offset Australia

Corporate tax rate plus an 18.5% premium, for aggregated turnover under A$20 million. A base rate entity pays company tax at 25 percent, so its refundable offset rate is 43.5 percent. The refundable offset is not available to an R&D entity controlled by one or more exempt entities. See Refundable vs non refundable: Australia.

Registration Australia

Register R&D activities with the department within 10 months of the end of the income year, then claim the offset in the company tax return by completing the R&D tax incentive schedule. Registration applies to an income year; activities continuing over several years must be registered for each income year in which they are conducted. Registration of activities does not amount to a decision that the activities are eligible R&D activities. See Registration with AusIndustry: Australia.

Registration or approval step All

A step some schemes require before the claim, such as registering the activities, obtaining approval of them, or notifying the tax authority of an intended claim. Missing it can remove the right to claim for the period. See R&D incentives by country.

Regular credit United States

20% of qualified research expenses above a base amount. The base amount is the fixed-base percentage times the average annual gross receipts for the four preceding taxable years, and may not be less than 50 percent of the current year QREs. A lower rate of 15.8% applies if the reduced credit is elected under section 280C(c). See ASC vs regular method: United States.

Reporting deadline Canada

The claim is filed with the income tax return and no later than 12 months after its filing due date. A corporation's income tax return is due six months after the end of its tax year, so the SR&ED reporting deadline falls 18 months after year end. An expenditure not identified on the prescribed form filed by the reporting deadline cannot be included in the SR&ED pool or earn an investment tax credit, and the Minister has no discretion to extend the deadline. See Deadlines: Canada.

Research and development (Singapore definition) Singapore

Systematic, investigative and experimental study that involves novelty or technical risk, carried out in the field of science or technology to acquire new knowledge, or to use the results to produce or improve materials, devices, products, produce or processes. Activities such as quality control, routine testing, market research and efficiency surveys are excluded. See Eligibility: Singapore.

Research and Development Tax Incentive (RDTI) New Zealand

New Zealand's Research and Development Tax Incentive gives a 15% tax credit for eligible R&D expenditure. It is administered by Inland Revenue. Expenditure limits: minimum NZ$50,000 a year, unless you use an approved research provider. Maximum NZ$120 million a year. See New Zealand: R&D Tax Incentive.

Research and Technology Advisor (RTA) Canada

The CRA reviewer who determines the eligibility of the work. A claimant who disagrees with the technical findings may request a discussion with the RTA's research and technology manager, and may request an administrative second review of the eligibility determination before the claim is assessed. See CRA reviews: Canada.

Research credit (section 41) United States

The United States gives a federal income tax credit for increasing research activities under section 41 of the Internal Revenue Code. It is claimed on Form 6765 with the tax return and administered by the Internal Revenue Service. Benefit type: income tax credit, not refundable. Unused research credit is carried back one year and forward twenty years under section 39. See United States: Research credit.

Revenue Commissioners (Revenue) Ireland

The Office of the Revenue Commissioners administers the R&D corporation tax credit. Benefit type: corporation tax credit, payable in instalments. See Ireland: R&D corporation tax credit.

Review All

The tax authority's check of a claim after it is filed, whether the country concerned calls it an examination, a compliance check, an enquiry, an audit or a review. Claims are generally selected on a risk basis. See Module 9: Reviews and audits.

Reviewer All

The official who checks a claim for the tax authority, and in some countries a technical expert engaged to assess whether the work meets the scheme's definition. See Contemporaneous documentation: what reviewers actually look for.

S

Science test Ireland

Revenue's test of the activities. The science test requires the company to show that the activities are in a prescribed field, seek an advancement in the field of science or technology, involve the resolution of scientific or technological uncertainty that a competent professional could not readily resolve, and are systematic, investigative or experimental. See Science test: Ireland.

Scientific or technological uncertainty United Kingdom

Exists when knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not readily available or readily deducible by a competent professional working in the field. R&D begins when work to resolve the scientific or technological uncertainty starts and ends when the uncertainty is resolved or work on it ceases. See Eligibility: United Kingdom.

Scientific or technological uncertainty New Zealand

Exists if knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not publicly available or deducible by a competent professional in the relevant field. See Eligibility: New Zealand.

Scientific research and experimental development (definition) Canada

Systematic investigation or search carried out in a field of science or technology by means of experiment or analysis. It covers basic research, applied research and experimental development, and support work that directly supports them. The CRA guidelines ask two questions: Why was the work done, which requires a scientific or technological uncertainty that could not be resolved by standard practice; and How was the work done, that is, was it a systematic investigation or search by means of experiment or analysis, involving a hypothesis, testing and conclusions. See Eligibility: Canada.

Section 14C Singapore

Allows a deduction for expenditure on R&D related to the trade, and for R&D undertaken in Singapore regardless of whether it is related to the trade. Expenditure on R&D undertaken outside Singapore is deductible at 100 percent under section 14C where the R&D is related to the trade, and does not qualify for the additional deductions under section 14D. See R&D done in Singapore vs overseas: Singapore.

Section 14D Singapore

Allows an additional deduction of 150 percent of staff costs and consumables incurred on R&D carried out in Singapore, giving a total deduction of 250 percent. For the Years of Assessment 2024 to 2028 the deduction on the first S$400,000 of qualifying staff costs and consumables for R&D carried out in Singapore is enhanced to 400 percent. See Enhanced deductions: Singapore.

Section 174 United States

The provision governing research or experimental expenditures. For amounts paid or incurred in taxable years beginning after December 31, 2021, specified research or experimental expenditures must be charged to capital account and amortised ratably over five years beginning with the midpoint of the taxable year. Foreign research or experimental expenditures remain subject to 15-year amortisation under section 174 for taxable years beginning after December 31, 2024. See Section 174: United States.

Section 174A United States

Added in 2025, section 174A allows domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2024 to be deducted currently, with an election to amortise over not less than 60 months. See Section 174: United States.

Section G (Form 6765) United States

The business component information section of Form 6765. For tax years beginning after 2025, Section G asks for information about each business component, with some exceptions: it is optional for qualified small businesses that make the payroll tax election and for taxpayers with total QREs of 1.5 million US dollars or less and gross receipts of 50 million US dollars or less. See Form 6765: United States.

Significant performer New Zealand

A person may apply for criteria and methodologies approval where their eligible R&D expenditure for the income year is expected to exceed NZ$2 million. A significant performer may choose to apply for general approval of its activities instead of criteria and methodologies approval. See Significant performer approval: New Zealand.

SME (R&D tax relief) United Kingdom

For R&D tax relief an SME has fewer than 500 staff and either turnover not exceeding 100 million euros or a balance sheet total not exceeding 86 million euros, including linked and partner enterprises. See ERIS R&D intensive SME: United Kingdom.

SME scheme and RDEC (legacy) United Kingdom

The reliefs for periods before the merged scheme. For expenditure incurred before 1 April 2023 the SME scheme gave an additional deduction of 130 percent and a payable credit of 14.5 percent of the surrenderable loss. The RDEC rate was 13 percent for expenditure incurred from 1 April 2020 to 31 March 2023 and increased to 20 percent for expenditure incurred on or after 1 April 2023. See Legacy SME and RDEC: United Kingdom.

SR&ED expenditure pool Canada

The SR&ED expenditure pool under subsection 37(1) may be deducted in whole or in part in the year, with the balance carried forward indefinitely. The pool is reduced by the investment tax credit claimed in the preceding year, so the credit is effectively taxable through a smaller deduction. See Eligible expenditure: Canada.

SR&ED program Canada

Canada's Scientific Research and Experimental Development (SR&ED) program gives a deduction against income and an investment tax credit for qualifying work carried out in Canada. It is administered by the Canada Revenue Agency. See SR&ED program: Canada.

Staff costs and consumables Singapore

Staff costs for the enhanced deduction comprise salaries, bonuses, allowances and employer CPF contributions of employees directly engaged in the R&D, excluding directors' fees, apportioned where the employee is not wholly engaged. Consumables are materials and items used up or transformed in the course of the R&D, excluding utilities and items of a capital nature. See Eligible expenditure: Singapore.

Subcontracted R&D All

Work on the project done by another business for the claimant. Schemes differ on how much of the payment counts, on whether the work must be done in the country, and on which party may claim. See Module 4: Contractors and overseas costs.

Subcontracted R&D (Ireland) Ireland

Expenditure on R&D activities carried on by an unconnected person on behalf of the company qualifies up to the greater of 15 percent of the company's own qualifying expenditure and €100,000, provided the person does not also claim. Expenditure paid to a university or institute of higher education qualifies up to the greater of 5 percent of the company's own qualifying expenditure and €100,000. A company that subcontracts R&D to an unconnected person must notify that person in writing that it is claiming the credit. See Eligible expenditure: Ireland.

Supplementary return New Zealand

The R&D supplementary return reports eligible expenditure by approved activity and calculates the tax credit and any refundable amount. File it within 30 days after the income tax return due date, or the extension of time due date. File the income tax return for the year first. See Supplementary return: New Zealand.

Supporting R&D activities Australia

Activities directly related to a core R&D activity. A supporting R&D activity that is an excluded activity, or that produces or is directly related to producing goods or services, qualifies only if undertaken for the dominant purpose of supporting core R&D activities. See Core vs supporting activities: Australia.

Supporting R&D activity New Zealand

An activity that must be required for and integral to a core activity. Inland Revenue guidance asks applicants to describe for each supporting activity the core activity it is required for and integral to. See Eligibility: New Zealand.

T

Tax and Duty Manual Part 29-02-03 Ireland

Revenue's guidance on the R&D corporation tax credit, including the science test, the accounting test, qualifying expenditure, subcontracting limits, grant assistance, the payment of the credit and record keeping. See Revenue guidelines: Ireland.

Tax authority All

The body that administers the scheme and reviews claims. In some countries a second body registers or approves the activities before the claim is made. See R&D incentives by country.

Technical narrative All

The written description of a project that explains the uncertainty, the work done to resolve it and the result, in the form and length the country's claim requires. See Writing a technical narrative that survives review.

Technical risk Singapore

Exists where the probability of achieving the technical objective cannot be known or determined in advance by a competent professional based on current knowledge. See Eligibility: Singapore.

Technical uncertainty All

Also called scientific or technological uncertainty. Not knowing whether something is possible, or how to achieve it in practice, where the answer is not readily available to a competent professional in the field. Resolving it is the common thread in every scheme's definition of qualifying work. See Qualifying versus non-qualifying activities.

Traditional method Canada

The alternative to the proxy method. Under the traditional method, overhead and other expenditures are allowable where they are directly related to the prosecution of SR&ED and would not have been incurred had the SR&ED not been carried out, and salaries of employees who directly undertake, supervise or support the prosecution of SR&ED may be claimed, a wider test than directly engaged. See Proxy vs traditional method: Canada.

Y

Year of Assessment (YA) Singapore

The tax year. The basis period for a Year of Assessment is the financial year ending in the preceding calendar year. The corporate income tax return filing due date is 30 November of the Year of Assessment. See Deadlines: Singapore.