What costs may be claimed?

The costs that may be claimed for R&D activities include:

  • Salary & wages
  • Overheads
  • Operating costs
  • Production costs during trial
  • Consultants or contractors
  • Payments to various research agencies and laboratories
  • Depreciation on capital assets
  • Plant leasing

As with any other tax matters, records must be retained to prove that these costs were actually incurred. Examples of records include time sheets, lab and trial logs, invoices, research reports, photographs, etc.