Scientific Research and Experimental Development Tax Incentive Program

What is the SR&ED Program?

It is a federal tax incentive program to encourage Canadian businesses of all sizes and any sector to conduct research and development in Canada that will lead to new, improved, or technologically advanced products or processes.

What work qualifies for SR&ED tax incentives?

It doesn’t matter if you have a sole proprietor, partnership, or  a corporation  to qualify, the work must meet the definition of Scientific Research and Experimental Development in Section 248(1)

To summarize what qualifies is any investigation or search that is carried out in the field of science or technology by means of experiment or analysis for advancement of general scientific knowledge or for the purpose of achieving technological advancement by improving existing or creating new materials, devices, products or processes.

How do I apply for SR&ED tax incentives?

To claim for SR&ED tax incentives, we can help you file your tax return on-time, along with along with all forms required depending on your business structure (Sole-Proprietorship, Partnership, Incorporated).

5 Services & Tools to help you get the most out of SR&ED

We provide many services & tools to help claimants complete the application properly

  1. First-Time claimant advisory service
  2. Identify potential eligible work
  3. Identify allowable expenditures
  4. Identify the type of documentation you need to support the claim
  5. Teach you how to complete and file your SR&ED claims
  6. Self Assessment and Learning tools
  7. Which will help you better understand the eligibility requirements of the SR&ED program

Important things to remember when applying for SR&ED

  • You have only 6 month after your fiscal year end to apply for the credit
  • It is important that you file your taxes on time. If you don’t you will lose the opportunity to get the claim for that year
  • Keep all receipts and documents related to the SR&ED expenses
  • If you use machines make sure you keep and activity log for each machine to keep track of hours you used for research
  • Keep time sheets for workers working on the SR&ED project to keep track of hours related to the project
  • These are all important and the CRA will request such documents when you file for the claim

It is a great program that any developer or researcher out there should take advantage of.

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