According to the provisions in the Income Tax Act, some of the main eligibility requirements of the R&D Tax Incentives are that:

  • The expenditure must be actually incurred in the year of assessment
  • The expenditure must be for purposes of discovery of information of a scientific or technological nature
  • The expenditure must be for purposes of development of new products or processes or design

Taxpayers can claim for the eligible scientific or technological R&D expenditure on salaries and wages, materials, building, machinery equipment, R&D overheads and external R&D contractors.


To qualify for the Accelerated Depreciation of R&D assets some of the criteria are:

  • A deduction is allowed in respect of a building, machinery, plant, implement, utensil and any item of capital nature that is used for the purposes of scientific or technological R&D in the year in which it is brought into use
  • If the building was used partly for eligible activities in the same year of assessment:
    • The part must be used regularly for scientific and technological R&D
    • The part must be specifically equipped for such use and the allowable deduction for that year will be apportioned accordingly.

All other assets must be previously unused and should be used solely for R&D activities

What criteria must be met to qualify for the R&D Tax Incentive?