Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/7)
Character Range: 5171251–5174025

(i) for which the R&D entity is registered under section 27A of the Industry Research and Development Act 1986 for an income year; and
 (ii) that are activities to which section 355‑210 (conditions for R&D activities) applies; and
 (b) if the expenditure is incurred to the R&D entity's *associate—is paid to that associate during the present year.
Note 1: If the matters in subparagraphs (a)(i) and (ii) are not satisfied until a later income year, the R&D entity will need to wait until then before it can deduct the expenditure for the present year.
Note 2: The R&D activities will need to be conducted during the income year the R&D entity is registered for those activities (see sections 27A and 27J of the Industry Research and Development Act 1986).
Note 3: The entity may also be able to deduct expenditure incurred to an associate in an earlier income year (see section 355‑480).
Note 4: Expenditure incurred in income years starting on or after 1 July 2011 may be deductible for activities registered for income years starting before 1 July 2011 (see section 355‑200 of the Income Tax (Transitional Provisions) Act 1997).
 (2) This section has effect subject to section 355‑225 (excluded expenditure), Subdivision 355‑F (integrity rules) and subsection 355‑580(3) (CRC contributions).

355‑210  Conditions for R&D activities
 (1) An *R&D activity covered by one or more of the following paragraphs is an activity to which this section applies:
 (a) the R&D activity is conducted for the *R&D entity solely within Australia;
 (b) if the R&D entity is a body corporate carrying on business through a permanent establishment (as described in subsection 355‑35(2))—the R&D activity is conducted:
 (i) for the body corporate; but
 (ii) not for the purposes of that permanent establishment;
  and the conditions in section 355‑215 (activities conducted for a body corporate by its permanent establishment) are met for the R&D activity;
 (c) the R&D activity is conducted for one or more foreign residents who are each:
 (i) incorporated under a *foreign law; and
 (ii) a resident of a foreign country for the purposes of an agreement of a kind described in subsection 355‑35(2);
  and the conditions in section 355‑220 (activities conducted for a foreign entity) are met for the R&D activity;
 (d) the R&D activity is:
 (i) conducted for the R&D entity solely outside Australia; and
 (ii) covered by a finding in force under paragraph 28C(1)(a) of the Industry Research and Development Act 1986;
 (e) the R&D activity consists of several parts, with:
 (i) some parts being conducted for the R&D entity solely within Australia; and
 (ii) the other parts being conducted for the R&D entity outside Australia while covered by a finding in force under paragraph 28C(1)(a) of