Eligible Entities

You are an R&D entity if you are a corporation that is any of the following:

  • incorporated under an Australian law
  • incorporated under a foreign law but an Australian resident for income tax purposes
  • incorporated under a foreign law and you are both  
    • a resident of a country with which Australia has a double tax agreement that includes a definition of ‘permanent establishment’; and
    • carrying on business in Australia through a permanent establishment as defined in the double tax agreement.

 You are not eligible for R&DTI if you are:

  • an individual
  • a corporate limited partnership
  • an exempt entity (where your entire income is exempt from income tax)
  • a trust (with the exception of a public trading trust with a corporate trustee).

There are special rules applied to consolidated groups and R&D partnerships.