Can I claim the cost of overseas contractors as part of R&D? (Australia)

Overseas companies (incorporated in another country) can claim the RDTI if their resident country has a double tax agreement with Australia, and they are carrying out business here through a ‘permanent establishment’. This is definitely one for the RDTI savvy accountants.

If you’ve carried out R&D activities overseas, it’s possible to claim up to half the total cost. You need to have a positive Advance/Overseas Finding, which is basically a full registration that gets reviewed immediately. You need to apply for this before the end of the financial year in which the activities began.