CDAE FAQ
Are you the owner of a company operating in information technology (IT)? You have certainly heard about the creation of a tax credit specifically dedicated to this sector of activity.
Known by the acronym CDAE, the tax credit for the development of e-business can be an important growth lever for your company.
Here is an FAQ that will guide you in your questions about CDAE:
Q: Which companies are targeted by this credit?
The companies targeted by this credit are:
- •
Companies in the information technology (IT) sector that mainly offer services for:
- – Computer systems design
- – Software publishing
- • Companies with an establishment in Quebec.
Q: What is the tax credit for the development of e-commerce?
The CDAE is a tax credit dedicated to companies in the IT (information technology) sector whose activities are related to e-business.
Q: How can my company benefit from the tax credit for the development of e-business?
Your company could benefit from:
Q: What expenses are eligible for the tax credit for the development of e-business?
IT Consulting Services
The consulting service must be related to improving electronic business processes through technology, more specifically to the development, integration, maintenance or evolution of information systems or technological infrastructures.
Information Systems
The company must be able to contribute to the development, integration, and incidentally to the maintenance and evolution of information systems and technological infrastructures.
E-commerce Solutions
The design or development of e-commerce solutions allowing a monetary transaction between the person, on whose behalf this design or development was carried out, and the clientele of this person.
Security Services
The development of security and identification services.
Please Note that
An activity of designing or developing e-commerce solutions allowing a monetary transaction between the person on whose behalf this design or development was carried out and the clientele of this person will no longer be an eligible activity.
However, such an activity of designing or developing e-commerce solutions may be an eligible activity if it is incidental to an eligible activity relating to the development or integration of an information system or technological infrastructure.
Q: How can I apply for the tax credit for the development of e-business?
Let our specialists help you complete a successful CDAE declaration in order to minimize your involvement and maximize your claim by taking into account all eligible expenses.
Q: What criteria must be met during company certification?
1 Criterion relating to the proportion of activities
- • 75% of activities must come from IT NAICS codes
- • 50% of activities must come from IT NAICS codes
2 Criterion relating to services provided
- • Particular attention to the ultimate beneficiary of the activities provided (dependency link between companies)
- • Determine if personnel leasing activities come from IT NAICS codes
3 Criterion relating to maintaining a minimum of employment
The company must maintain a minimum of six eligible employees at all times during the fiscal period in question.
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