SR&ED Refunds made easy
What is SRED?
What is SR&ED?
The Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program designed to encourage R&D activities in Canada. The program is administered by the CRA.
According to the CRA, each year $3 billion of tax incentives are distributed to over 20,000 claimants, of which 75% are small businesses.
WHAT ARE THE BENEFITS OF SR&ED?
The specific incentives of the program vary based on the circumstance of the applicant. They can include,
- Deduction of the SR&ED expenditure from taxable income which leads to a lower tax calculation
- SR&ED Investment Tax Credit (ITC). For some qualifying claims, the ITC can be in the form of a cash refund
SR&ED claims are filed by submitting a completed Form T661 along with your annual income tax forms.
What are the benefits of SR&ED?
Who qualifies for SR&ED?
WHO QUALIFIES FOR SR&ED INCENTIVES?
Canadian-Controlled Private Corporations (CCPCs) qualify for the most benefits – refundable ITCs equal to 35% of qualified SR&ED expenditures (maximum expenditure limit of $3 million). Other corporations can also receive non-refundable ITC at a rate of 15% of qualified SR&ED expenditures.
Qualified SR&ED expenditures are salaries and wages for FTEs and contractors, materials, lease costs and overhead that are incurred for SR&ED purposes. In addition, companies can claim provincial ITCs up to 30%.
Click here to find out if you might qualify for SR&ED.
How Can Easly Help?
Easly can finance your refund so you can reap the benefits now instead of waiting for the CRA to approve and refund your claim.
We offer preferred rates for clients that use our network of trusted SR&ED consultants to prepare their CRA SR&ED forms.
If you have already engaged a SR&ED consultant to prepare your claim, we can still help you finance your SR&ED refund now.