IP Holding Company and R&D Tax Incentive

[MrTelly]

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Hi FS,
Can I claim R&D Tax incentive using my trading company, if the resulting IP is then held by my separate IP company? My understanding is the money I can claim is offset against tax, but as the IP company pays minimal tax there’s nothing to offset.

I have two companies, one for IP, and another one for day to day prof services. This setup protects the IP in event of a claim against me (Note – IANAL so take advice don’t trust me on this). I’m thinking the IP is generated within the trading company, to get best use of the R&D incentive, it’s then passed to the IP holding company – but that’s an educated guess and I’d like some real world information, I’ve googled and found nothing that answers what to do in this situation.

I realise this is pretty technical, but worth an ask to see if someone here has knowledge. My industry is software dev where I research and create product, I also provide professional services to pay the bills.

I’ve been using this excellent article as a starting point on what is claimable – https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/practice-management/intellectual-property-research-development-concessions.pdf?la=en

Cheers

MrTelly

[Paul – FS Concierge]

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Hopefully some helpful members will be along soon with some advice to point you in the right direction.
Cheers

[Author]

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