SR&ED Tax Credit: Maximize Your Tax Deduction
The Scientific Research and Experimental Development (SR&ED) tax credit program is one of the most generous tax incentives in Canada. It is designed to encourage businesses of all sizes to invest in research and development (R&D) on Canadian soil. Through the SR&ED credit, your business can recover a significant portion of its expenses, transforming your innovation investments into a powerful growth lever. Our SR&ED claim experts are here to support you at every step, from identifying eligible projects to maximizing your return.
Request a free consultationWhat is the SR&ED Tax Credit?
The SR&ED tax credit is a federal program administered by the Canada Revenue Agency (CRA) that offers tax incentives in the form of cash refunds or income tax reductions. It aims to reward businesses that conduct R&D activities in Canada, thereby contributing to the country's technological and scientific advancement.
Canadian-controlled private corporations (CCPCs) can benefit from a refundable tax credit of up to 35% on eligible expenses, up to a limit of $3 million. For other corporations, the credit is 15% and is non-refundable, but can be used to reduce income tax payable.
Benefits of the SR&ED Program
Non-dilutive financing
Unlike capital investment, tax credits do not dilute your stake in the business.
Increased liquidity
Refunds can improve your working capital and finance future projects.
Competitive advantage
By reducing the cost of R&D, the program allows you to innovate more and stay competitive.
How Does Tax Credit Claiming Work?
The SR&ED tax credit claiming process may seem complex, but it can be simplified by following a structured approach. Our SR&ED claim experts help you navigate this process successfully.
| Step | Description |
|---|---|
| 1. | Identification of eligible projects: The first step is to determine which of your business activities qualify as R&D according to CRA criteria. |
| 2. | Technical documentation: It is crucial to document hypotheses, experiments, analyses and conclusions of your projects in a contemporary manner. |
| 3. | Expense tracking: You must compile all eligible expenses, including salaries, materials, subcontracting contracts and overhead costs. |
| 4. | Application preparation: The SR&ED credit application is submitted with your tax return and includes forms T661 and Schedule 31. |
| 5. | Defense in case of review: The CRA may select your application for review. Our experts assist you in defending the legitimacy of your claim. |
Our SR&ED Claim Experts
Calling on SR&ED claim experts is the safest way to maximize your tax credit while minimizing the risks of refusal or review. Our multidisciplinary team consists of engineers, scientists and tax specialists who understand both the technical subtleties of your R&D and the CRA's tax requirements.
Our Approach
| Step | Description |
|---|---|
| 1. | Free evaluation: We analyze your claim potential at no cost or commitment. |
| 2. | Complete support: We help you document your projects and build a strong case. |
| 3. | Credit maximization: We identify all eligible expenses to ensure maximum return. |
| 4. | Post-claim support: We represent you in case of CRA review. |
SR&ED Tax Credit Eligibility Criteria
For a project to be eligible for the SR&ED tax credit, it must meet three fundamental criteria defined by the CRA:
Scientific or technological advancement
The project must aim to advance knowledge or technological capability in a field.
Scientific or technological uncertainty
There must be uncertainty about how to achieve the objective or about the objective itself, which cannot be resolved by existing public knowledge.
Scientific or technological content
The project must follow a systematic approach to investigation or research, through experimentation or analysis.
Maximize Your SR&ED Tax Credit
To get the most out of the program, it is essential to adopt best practices from the start of your R&D projects. Here are some tips from our SR&ED claim experts:
Document everything
Keep a detailed record of your activities, meetings, tests and results.
Separate expenses
Set up an accounting system that makes it easy to track R&D-related expenses.
Train your team
Educate your technical employees on the importance of documentation for the SR&ED credit.
Consult experts
Don't wait until the end of the year to think about your claim. Early support is the key to success.
The SR&ED tax credit is an exceptional opportunity for innovative businesses in Canada. By partnering with experts, you ensure you fully benefit from this tax advantage and propel your growth.
Ready to maximize your SR&ED credit?
Contact our experts today for a free evaluation of your claim potential.
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