{"id":819,"date":"2016-10-26T02:03:57","date_gmt":"2016-10-26T02:03:57","guid":{"rendered":"http:\/\/rdactionconsultant.com\/en\/?p=819"},"modified":"2025-11-27T18:29:35","modified_gmt":"2025-11-27T18:29:35","slug":"sr-ed-credits-for-you","status":"publish","type":"post","link":"https:\/\/rdactionconsultant.com\/en\/blog\/sr-ed-credits-for-you\/","title":{"rendered":"SR & ED credits for you"},"content":{"rendered":"
\n

Is this your story?<\/h2>\n

Joe is constantly confronted with technical problems, customer requirements, too tight deadlines or incompatible technologies. He sees nothing else. It has to work at any cost.<\/p>\n

All entrepreneurs live the same kind of situation one day or another. They are very concerned about the survival of their business, they are totally dedicated to the delivery of their solutions and to the satisfaction of their clients. But several of them completely forget important opportunities to support their growth. One has to simply take a good look at it.<\/p>\n

The opportunity<\/h2>\n

Canada is one of the most generous countries to support innovative companies. The tax credit program for Scientific Research and Experimental Development (SR & ED) is claimed annually by more than 25,000 companies for more than $ 3 billion of loans.<\/p>\n

\u00ab In Quebec, you can claim (in cash) R&D tax credits up to\u00a073% of the salaries of developpers\u00a0involved in eligible work \u00bb<\/div>\n

Accessible to everyone<\/h2>\n

You can finance the development of your technology in Canada regardless of the area in which you operate: the web, telecom, IT, health sciences or manufacturing.<\/p>\n

Is it for me?<\/h3>\n

Look at your big technological projects underway or recently delivered. All projects can not qualify, of course. But if you answer yes to three questions, then you need to think more seriously there:<\/p>\n

1- Delivering this project he forced you to make technological innovations?<\/p>\n

2- Did you face technical risks associated with this project?<\/p>\n

3- This project he has you progress in your understanding of the technological components? Would you do this project in the same way, now that you know the limitations of these technologies?<\/p>\n

Advantages<\/h2>\n

Why not take a look? Take time it is worth to be interested. Here are some very good reasons:<\/p>\n

– You can claim up to 73% of salaries<\/span> <\/strong>of employees involved in work to solve these technological problems. The credits for R & D (SR & ED for insiders) are a form of very attractive financing.<\/p>\n

– Many of your competitors are already using. This is an important advantage they do not boast but a direct impact on profitability. Why not for you?<\/p>\n

– $ 1,000 tax credit can not be compared to sales of $ 1,000, but to a net profit after tax of $ 1,000<\/p>\n

– It is a source of direct financing of the development of your technology.<\/p>\n

o Some thus finance a portion of their next delivery technology.<\/p>\n

o Others see the credit as a direct payment of salaries of technicians.<\/p>\n

– This credit is available each year. It is therefore possible to plan your tax credits to finance your major developments<\/p>\n

– This is a business development tool. You can use this credit to share the risk associated with some of your technology projects between you, your customers and the government.<\/p>\n

\u00ab $1 in R&D tax credit can not be compared to sales of $1, but with net profit after tax of $1 \u00bb<\/div>\n

How do we do it\u00a0?<\/h2>\n

To claim tax credits SR & ED you must produce a short technical report for each eligible project and calculate the costs related to these projects. You must also meet the technical and accounting support documentation for each project.<\/p>\n

1- Start now<\/h3>\n

First, do not be too long ! The credit can be claimed for the current fiscal year and the previous one, if it ended there less than eighteen (18) months.<\/p>\n

2- Identify your technology projects<\/h3>\n

Then, make a first list of recent and ongoing projects<\/a> <\/strong>for which:<\/p>\n

– Technology has presented one or challenges,<\/p>\n

– You had to take your concept more than once,<\/p>\n

– You have reached the limits of available technology<\/p>\n

– You attempted to overcome these limitations (you can claim even if you have not managed to push the boundaries), and<\/p>\n

– You learned what to do – and not do – with this technology.<\/p>\n

3- Document<\/h3>\n

Then, you begin to gather your evidence and documents<\/a><\/strong> to support your answers:<\/p>\n

– Project Plans,<\/p>\n

– Email,<\/p>\n

– Letters,<\/p>\n

– Timesheets,<\/p>\n

– Contracts,<\/p>\n

– Reports,<\/p>\n

– Plans and test results,<\/p>\n

– Registers<\/p>\n

– Wiki.<\/p>\n

4- Get help<\/h3>\n

Finally, the SR & ED program is a bit complex for a beginner. Consult with experts in this type of case. This saves a lot of time! They know how to distinguish what can be claimed and how to develop to maximize opportunities to obtain this credit. They are often paid a percentage. It is their way of sharing the risk of the file with you.<\/p>\n

Find a good counselor in R & D:<\/p>\n

– Includes your technology,<\/p>\n

– To experience this kind of specialized file<\/p>\n

– With that advance your understanding of the program.<\/p>\n

Conclusion<\/h2>\n

In conclusion, the SR & DE tax credits program is for you if you develop technology and meet challenges in doing so. In the coming weeks we will provide ideas and examples for identifying SR & ED activities in your development projects.<\/p>\n

What do you think of the program? Do you see an opportunity for your company? Have you taken advantage of this tax credit?<\/p>\n

Did you like reading this ? Tell us so. What should be added ? What are you interested into ? You did not like reading this ? Tell us so. What is it that you disliked ?<\/p><\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Is this your story? Joe is constantly confronted with technical problems, customer requirements, too tight deadlines or incompatible technologies. He sees nothing else. It has to work at any cost. All entrepreneurs live the same kind of situation one day or another. 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