The Canadian Government encourages and supports business owners who develop technical advancement and scientific knowledge by way of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program. Canadian companies have an opportunity to realize up to a 68% refund on monies expended on R&D. Expenditures include your time, employee’s labour, materials and equipment, regardless if you have paid any tax.
Through the SR&ED program, companies receive R&D refunds for expenses incurred through in-house research and experimentation.
Revenue Canada defines work that qualifies for SR&ED tax credit as follows:
To qualify for the SR&ED program, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.
Work that qualifies for SR&ED tax credits includes:
Experimental development to achieve technological advancement to create new materials, devices, products, or processes, or improve existing ones.
Applied research to advance scientific knowledge with a specific practical application in view.
Basic research to advance scientific knowledge without a specific practical application in view.
Support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is commensurate with, and directly supports, the eligible experimental development, or applied or basic research.
Will my business become eligible for SR&ED credits?
Does your business need help offsetting its costs for research and development efforts? If your company focuses on progressing and innovating your industry’s work and technology, then it could be eligible for SR&ED tax credits. The SR&ED Program is the largest source of federal government support for research and development in Canada, providing over $3 billion to over 20,000 claimants each year. While it may be second nature to ask your in-house finance team to help file your claim, did you know that there are experts in the industry who can help you streamline the process?
At CI Solutions, we offer SR&ED consulting services to help Canadian companies like yours maximize their SR&ED tax credits. With years of experience in the field, we understand the challenges of running and growing a business in today’s economy. That’s why we make it our priority to help Canadian companies like yours identify, develop and process SR&ED claims.
Debating between filing your claim in-house and asking an expert for help? Learn why you need an SR&ED consultant on your case:
For a more comprehensive overview of the Canadian Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, please follow the link to the CRA website detailing the numerous aspects of the program.
When submitting for the tax refund, CI SOLUTIONS will prepare a detailed technical report describing your project and the development or experimentation performed. CI SOLUTIONS financial consultants will also prepare all tax schedules and accounting reports detailing the costs associated with the project. A properly prepared report is essential for your submission to be accepted. CI SOLUTIONS carefully considers every detail of your claim reports for accuracy and effectiveness and, of course, you may review them prior to filing.
Employee wages, sub-contracts and owner’s labour represent the bulk of all claim expenses. Materials and expenses are also allowed if they are used only for eligible projects.