What is SR&ED?
SR & ED stands for Scientific Research and Experimental Development. It refers to activities performed by a company for the purposes of research and development. These can include developing a new concept, working on new projects or making innovations to an existing product or service.
What is the SR&ED Tax incentive program?
The Canadian government provides tax credits and refunds to businesses of all types and sizes that perform research and development work in Canada. This program benefits business both by allowing a business to deduct certain expenses from their income for tax evaluation, and by providing a tax credit that reduces that amount of taxes you pay, and can even result in a refund.
How do I know if I qualify?
Any business that performs activities of scientific research, applied research or experimental development is eligible for this program. The criteria for work that is considered to be SR&ED is identified in section 248(1) of the Income Tax Act.
Essentially, eligible work includes basic research for the purpose of scientific knowledge, scientific researched performed for a specific application, or work that is done with the intention of advancing and improving technologies, materials, devices, or processes within a specific industry. You don’t even need to have been successful in your SR&ED activities. As long as you have incurred SR&ED expenses in a legitimate attempt to succeed, you could qualify.
Where does SR&ED Plus come in?
SR&ED Plus will analyze and evaluate your company’s eligibility for an SR&ED tax credit. Once your eligibility is affirmed, we will obtain the necessary technical data and financial data from you, prepare/finalize the claim in accordance with CRA requirements and file the claim within necessary deadlines. We will liaise with CRA in the processing/claim approval process to ensure that you receive all of the money to which your company is entitled.