Australia R&D Tax Incentive (Income Tax Assessment Act 1997 Division 355) IRD-28C-28D: IRD Act ss 28C and 28D Obtain an overseas finding before counting expenditure on R&D conducted outside Australia

Expenditure on an activity conducted outside Australia counts only if a Board finding under s 28C(1)(a) is in force for it (ITAA 1997 s 355-210(1)(d) and (e)); the finding comes into force from the start of the income year in which the application is made, so the entity applies no later than the year the overseas work is conducted. The four conditions are: the activity is covered by a finding that it is a core or supporting R&D activity; it has a significant scientific link to Australian core activities conducted solely in Australia and registered or likely to be registered (the Australian activities cannot be completed without it); it cannot be conducted solely in Australia because it needs a facility, expertise or equipment, a population or a geographical or geological feature not available here, or would breach biosecurity or quarantine law; and total expenditure on the overseas activity and linked overseas activities is less than on the Australian core activities and their Australian supporting activities.