SR&ED Tax Credits & Others

Minimize Tax Burden Weighting on Your Business

The tax credits under the Scientific Research & Experimental Development (SR&ED) programs are just one of the many tax credits available in Canada that can help businesses to reduce overhead and increase return on business expenditures. Other federal and provincial government incentives are available in the following areas:

  • Apprenticeships
  • Biotechnology
  • Co-operative education
  • E-business
  • Film, video, and television production
  • Industrial research
  • Interactive digital media

Identify which programs you may be eligible for in the current year and in previous years. You may be able to offset taxes payable and, in some cases, receive refundable cash incentives.

SR&ED TAX CREDITS

Both the federal and provincial governments offer generous SR&ED tax credits to encourage Canadian businesses of all sizes and in all sectors to conduct SR&ED that leads to new or improved products or processes. The federal tax credits range from 20-35 percent of eligible SR&ED costs. Certain Canadian-controlled private corporations may be eligible for a 35% tax credit which is even refundable if no tax is owed by the corporation. Yet it is estimated that less than 15% of the businesses that qualify apply for these benefits. Furthermore, many businesses do not realize that their current SR&ED expenses may be eligible for a 35% refund from the Canada Revenue Agency (CRA).

A qualified claimant can file the SR&ED claim up to 18 months after the year-end of its business.

Determine whether your company is eligible to recover tax credits for the current year and prior years, subject to the prescribed time limits. We can tailor our services to help optimizing your SR&ED claim while minimizing administrative burden, which may include the following:

  • Review/revise your business processes to optimize the identification and tracking of eligible projects and costs
  • Prepare the technical reports for SR&ED projects
  • Identify eligible SR&ED costs by project
  • Prepare the claims for the SR&ED tax credits
  • Assist in the claim defense during a CRA audit
  • Train your finance and engineering department staff on the criteria and requirements of the SR&ED program
  • Provide advice on where to establish your global SR&ED centres to enhance the SR&ED tax benefits granted by Canada and various countries, if applicable
SRED Tax Credits