E-BUSINESS TAX CREDIT (CDAE) ELIGIBLE ACTIVITIES
With the e-Business Development Tax Credit (CDAE) program, you can get a refundable tax credits of 30% of your IT salaries. These credits can be claimed every year to grow your business and support your competitiveness.
To obtain this benefit, you must demonstrate that the activities performed by your resources are eligible. That is, these activities must:
- Be performed in an site located in Québec;
- Be connected to the development of the company’s e-business;
- Transform a company’s core business processes. For instance by integrating Internet or any other network technologies (ex.: ERP).
The activities eligible for the e-business (CDAE) tax credit are related to the design and development of e-commerce solutions (such as portals, search engines and transactional websites).
- It is sometimes difficult to distinguish a transactional site from an informational or institutional site. The last two types are not eligible for the CDAE;
- When the company provides related services to transactional websites, portals, intranets, extranets or mobile applications
- All work on non-transactional (informational) websites that do not change the process of the client company must be eliminated.
Examples of eligible activities for the e-business tax credit:
- Design and programming of transactional websites;
- Design, programming and integration of operations systems;
- Consulting for the design of information systems;
- Development of security and identification services related to e-business;
- Technology-related IT consulting services;
- Development, integration and, incidentally, maintenance and evolution:
- Information systems;
- Technological infrastructure;
- E-commerce solutions for monetary transactions;
- Security and identification services.
Examples of excluded activities from the e-business tax credit:
- Activities that are not related to transactional web sites;
- Operating an e-business solution (for example, processing electronic transactions through a transactional website);
- Management or operation of computer systems.
- Applications or infrastructure resulting from e-business activities;
- The operation of a call center or CRM;
- Equipment installation and training activities;
- Management tasks;
- Activities related to a marketing information system
- Activities aimed at increasing the visibility of a business and promoting it to a current or potential clientele;
- Works for which the ultimate beneficiary is a government entity or department.
Important note: This blog is for information only. Before submitting a claim, consult an accounting or tax specialist such as R&D Action. You should also review the relevant policies available on the Investissement Québec (IQ), and Revenu Québec (in french)(ARQ) websites.
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