Research & Development Tax Incentive in-year Payments - Interim Solution

Details

What the Ministry of Business Innovation & Employment (MBIE) need:
The Research and Development Tax Incentive (RDTI) provides a tax credit or refund for eligible R&D expenditure. The credit is currently paid in one lump sum after businesses have filed their income tax return, however it would be preferable to provide payment in the same year in which the expenditure is incurred, allowing businesses to benefit from their tax credits sooner.
In the medium to long-term the Government expects to be able to deliver an in-year payments solution through the tax system. In the short-term (for the 2022/22 tax year) MBIE wishes to establish a short-term programme to provide in-year payments of the RDTI. We anticipate this will take the form of a temporary loan programme administered in partnership with the private sector, with loans issued by the Crown. Through this RFI, MBIE is seeking to understand the interest and capability of potential suppliers to administer an in-year payments programme and indicative costs.

What MBIE don’t want
MBIE are not at this stage requesting detailed quotes or proposals, but rather we are seeking to improve our state of knowledge of matters such as: who is interested in partnering with us to deliver an in-year payments service, what the solution could look like; and what are the indicative costs to set up and administer this solution.

The details and requirements of this RFI are set out in the attached RFI document.