The SR&ED Canada Tax Credit Program (Scientific Research & Experimental Development) provides significant tax benefits, including cash refunds to businesses carrying out all types of research in Canada. RDP has been dedicated to proactively helping companies make successful claims since 1988.
RDP utilizes the skills and experience of highly qualified Technical Consultants as well as Financial Associates to complete our comprehensive assessments of SR&ED tax credit potential. Most of our Consultants have well over 10 years of experience in a wide range of industries.
How Does the SR&ED Tax Credit Program Work?
This program is the most accessible and arguably provides more R&D funding to Canadian businesses than any other Government Assistance Program available. Here's how the Program works:
- The SR&ED Canada Tax Credit Program acts like a government grant for Canadian controlled private corporations (CCPCs) that meet certain criteria.
- In certain circumstances, the Federal Government provides a refundable tax credit rate of 35%. If your Company doesn't owe any tax in a given year, the SR&ED Tax Credit is refunded in cash.
- The provinces also provide R&D incentives. For example, Ontario makes available a 10% refundable tax credit.
- Large, foreign controlled or public companies which are not eligible for the federal 35% refundable tax credit are eligible for a 20% non-refundable federal SR&ED tax credit.
- There are three criteria that must be met, to determine if a project is eligible for SR&ED. First, there must be a technological advancement in the business setting. Second, a technological uncertainty must exist. Finally, an experimental process must be followed.
- There are two components of an SR&ED Tax Credit claim: the first component is identifying an SR&ED project and writing up a project description; the second component is to identify the eligible expenditures that qualify as SR&ED which can then qualify for a tax credit.
- Many complex provisions exist under the Income Tax Act as well as numerous precedent-setting court cases, along with administrative positions set out by CRA. RDP helps clients cut through this maze of rules so that successful claims can be made quickly, efficiently and expediently.