Let your SR&ED become fuel for your Innovation
Canada's Scientific Research and Experimental Development (SR&ED) tax incentive program is an important financial incentive designed to encourage businesses in conducting research and development (R&D) activities. This program supports innovation by offering substantial tax credits and refunds to companies across various industries.
The SR&ED program is a federal initiative that provides tax incentives to Canadian businesses of all sizes for conducting R&D work in Canada. Whether your business is improving existing products, developing new ones, or creating innovative processes, SR&ED tax credits can significantly help your R&D endeavours.
What is SR&ED?
Benefits of SR&ED
1
Generous Tax Credits
Eligible businesses can claim up to 35% of qualified expenditures as refundable tax credits.
2
Cash Refunds
Small and medium-sized businesses (SMBs) may receive cash refunds even if they have no taxable income.
3
Broad Eligibility
The program applies to a wide range of industries, including manufacturing, software development, biotechnology, and more.
4
Ongoing Support
SR&ED tax credits are available annually, allowing businesses to continuously invest in innovation.
Who Can Apply?
​The Scientific Research and Experimental Development (SR&ED) tax incentive program in Canada is designed to support businesses and other entities that engage in research and development activities. The program allows eligible applicants to reduce their income tax payable through deductions or by earning investment tax credits (ITCs).
Eligible Applicants:
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Corporations: Both Canadian-controlled private corporations (CCPCs) and non-CCPCs can apply. The rate of return and ITC eligibility differ between them.
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Individuals and Trusts: Those conducting SR&ED activities in Canada may qualify.
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Partnerships: Partnerships can claim SR&ED, with ITCs allocated to their eligible partners.
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To be eligible for SR&ED tax incentives in Canada, a company must be a profit-driven entity based in Canada, engaged in activities such as basic research aimed at advancing scientific knowledge, applied research with practical applications in view, or experimental development focused on technological innovation. These activities must involve a systematic investigation or search carried out in the fields of science or technology​​​.
What Qualifies as SR&ED?
The SR&ED program is designed to support a broad spectrum of R&D activities, including:
01
Experimental Development
This is the most common type of SR&ED work, focusing on developing new materials, devices, products, or processes, or significantly improving existing ones​​. (i.e., technological knowledge).
03
Basic Research
This involves experimental or theoretical work undertaken to gain new knowledge without a specific application in mind. It's typically done in academic or lab settings.
02
Applied Research
Applied research is directed toward a specific practical aim or objective. The knowledge gained is intended to address specific challenges or create solutions.
04
Support Work
Eligible support work must directly support and align with the needs of basic, applied, or experimental research and development (SR&ED), including categories like engineering, design, operations research, mathematical analysis, and testing.
What Are The Eligible Expenses For The SR&ED Tax Credit?
Salaries
Paid to technical employees directly performing SR&ED activities
Sub-Contractors
Located within Canada for SR&ED projects
Materials
Consumed during testing, contributing to SR&ED expenditure
Why Choose Us For Your SR&ED Claims?
Navigating the SR&ED program can be complex. Our team of experts specializes in maximizing SR&ED claims for businesses across Canada. With a deep understanding of the program's requirements and a proven track record of successful claims, we ensure that you receive the maximum benefit.
01.
Expert Guidance
We provide end-to-end support, from identifying eligible projects to filing your claim.
02.
Tailored Solutions
We understand that every business is unique, and we tailor our services to meet your specific needs.
03.
Maximize Your Claim
Our detailed approach ensures that all eligible expenses are captured, maximizing your SR&ED credits.
04.
Audit Support
If your claim is reviewed, we offer comprehensive audit support to ensure a smooth process.
How we do it?
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- Pre-Claim Consultation- Conducting a high level discovery for the SR&ED eligibility of your projects. Free consultation with no obligation.
- Technical & Financial information Collection- Documenting project details, technical complexities, outcomes, project durations and SR&ED spend to maximize your refund.
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Pre-submission Review- Preparing your SR&ED claim and discussion on your finalized claim before submitting.
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SR&ED claim submission- Submitting the finalized claim to the CRA or collaborating with your accountant to ensure it is filed accurately. In the event of an audit, rest assured we will handle the audit until you get your money.
CONTACT US
Get in Touch
Reach out to us at InnovateSRED to explore how we can help you maximize your SR&ED benefits and drive innovation in your business.
