SR&ED

What is the SR&ED tax incentive?

Scientific Research and Experimental Development (SR&ED) tax incentive is a program offered by the Canadian government to companies that strive to innovate. It aims to foster experimentation and advancement in Canada.

SR&ED is the most generous programs of its kind in the world. In excess of $2 billion is paid out annually to over 16,000 participants.

Unfortunately, the majority of claimants are discouraged by the complex, often confusing legislature and tedious preparation of all of the necessary tax forms and scientific reports. Many have their claims rejected, substantially reduced or do not participate at all.

With BeneFACT as your partner, you are guaranteed to receive a maximum tax credit that covers all of your eligible expenditures.

SR&ED expenditures are deductible as your business expense and generate substantial tax credits that may be refundable and equal up to:

68% of salaries, wages and overhead
42% of materials, subcontracts, and lease costs
23% of capital equipment expenses

Are you Eligible for the SR&ED Tax Credit?

You may qualify if you have:
• Solved technological problems or performed non-routine
• Developed new products or features
• Built prototypes or used new materials
• Modified existing machinery or equipment
• Developed processes to reduce cost or to increase productivity

Did you know that:
• Your advancement can be small or incremental. No need for a “quantum leap” in your respective field.
• Failed or cancelled R&D projects still qualify.
• You do not need to be profitable. If no taxes were paid, up to 100% of your tax credit is refunded.
• R&D related subcontracts can be claimed.
• You may be eligible for 2 fiscal years initially.