Research and development tax credit
The Scientific Research and Experimental Development (SR & ED) Tax Credit program encourages Canadian companies of all sizes and industries to carry out internal R & D activities processes to develop new or improved products or services.
This credit is the largest tax credit program for the development of technology in Canada. The SR & ED program annually delivers to more than 20,000 businesses at least $ 3 billion in tax credits on the federal side and several hundred million on the provincial side.
The Canada Revenue Agency (CRA) is responsible for administering the program at the federal level. The Department of Finance is responsible for the legislative framework that governs this program. Several provinces, including Quebec and Ontario, also offer such an incentive program to invest in R & D. Each province has its own methods and credit calculation rates. Only the CRA has staff to assess the technical eligibility of projects.
The Scientific Research and Experimental Development (SR & ED) Tax Credit program encourages Canadian companies of all sizes and industries to carry out internal R & D activities processes to develop new or improved products or services.
This credit is the largest tax credit program for the development of technology in Canada. The SR & ED program annually delivers to more than 20,000 businesses at least $ 3 billion in tax credits on the federal side and several hundred million on the provincial side.
The Canada Revenue Agency (CRA) is responsible for administering the program at the federal level. The Department of Finance is responsible for the legislative framework that governs this program. Several provinces, including Quebec and Ontario, also offer such an incentive program to invest in R & D. Each province has its own methods and credit calculation rates. Only the CRA has staff to assess the technical eligibility of projects.
The opportunity
Any business that develops technology in Canada can benefit. You need to assess whether the SR & ED tax credit is an opportunity for you because:
- It’s very lucrative,
- Refunds can be up to 73% of accepted salaries,
- Tax savings are net cash after tax.
- How many sales do you need to generate to make $ 100 after tax?
- Your competitors are already capitalizing on this opportunity,
- Why not you?
The challenge
The majority of claims are prepared by professional practitioners because:
- The SR & ED program is highly science-based, rather than innovation-based,
- This is the most complex tax assistance program, especially for a new SR & ED claimant,
- The CRA has raised the bar:
- Through its five questions regarding the eligibility of SR & ED activities
- By increasing its controls,
- Through its documentation requirements for each project.
The illusion
You believe you are eligible because your claim has been accepted for years as claimed? Beware of unpleasant surprises:
- Your claim has probably not yet been selected for audit,
- Each year is processed independently by the CRA. Acceptance of your work one year does not guarantee automatic acceptance the following year in the same project.
- The CRA scientific advisor may vary from year to year. A new advisor may come to different conclusions about your work this year.
The solution: R & D Action
R & D Action is a seasoned team of SR & ED specialists, an important and structured source of expertise and information on the SR & ED claim process.
You are the specialists of the content, the technology that you develop.
We are specialists in the format: how to define and present your projects and activities in order to maximize their eligibility potential in the eyes of the CRA. We are used to SR & ED and we know the CRA employees.
Claiming an SR & ED tax credit is not a easy. We are experts in limiting your risks. Call us, the evaluation is free
Research and development :
get a tax credit through R & D Action