About the program
SR&ED Tax Credits?
What is
Eligible for SR&ED?
The Scientific Research & Experimental Development (SR&ED) program is the largest source of research and development funding in Canada. The program’s purpose is to reward businesses, from start-ups to multinationals, that focus on innovation and advancement in science and technology undertaken in Canada.
Eligible sectors include those undertaking research and development in Canada. As the SR&ED program is industry agnostic, eligibility can be found in varying sectors such as: computer sciences, engineering, manufacturing natural and formal sciences, medical device, health sciences, biotechnology, agricultural sciences, communications, plastics, mining, etc.
A fundamental difference from grant type programs is that the SR&ED program's entitlement nature means that eligible companies are entitled to receive the benefits (i.e., investment tax credits) of the program, encouraging ongoing investments in research and innovation. Qualified expenditures typically include wages, materials, overhead, and subcontractor costs directly related or in support of the research and development efforts.
The Scientific Research and Experimental Development (SR&ED) tax incentive program provides compensation primarily in the form of Investment Tax Credits (ITCs) to offset eligible expenses incurred by Canadian businesses to conduct research and development (R&D) in Canada. If you are developing a new technology, improving existing technology, products or processes, you could be eligible to receive tax credits or cash refunds under the SR&ED program.
Who is
Eligible for SR&ED?
Typically, lead times from initial client contact to generating revenue can drastically very depending on many factors (i.e., if the claimant is filing on a first-time basis, claimant filing history with the CRA, size of claim, potential of CRA review/audit, etc.). The time from preliminary claim eligibility scoping through to claim acceptance can range anywhere from 1-6 months or longer. Knowledge Gap is there every step of the way to provide full support in ensuring maximization of your claim entitlements.
Get My SR&ED Refund?
How long does it take to
How does
SR&ED Work?
SR&ED claims are filed with the Canada Revenue Agency (CRA) through a comprehensive submission that includes technical and financial documentation, outlining the eligible research and development activities and associated expenditures claimed. Claims are filed as part of a claimant’s tax return, and once a claim is submitted along with the associated tax filing, the CRA has various service standards associated with claim processing times which typically range between 60-180 days.
Why
Use a SR&ED Consultant?
To submit a SR&ED claim, there are onerous requirements in properly determining both technical and financial eligibility, encompassed by upwards of 1.4 million words of policies, supporting documents and legal precedent. A SR&ED consultant helps in recognizing the underlying concepts of policy documents, history, jurisprudence, and CRA culture which are ever-changing and continually in flux. The benefits of engaging a SR&ED specialist generally include intimate knowledge of SR&ED policy and associated filing requirements, possessing insights into past and current experience and familiarity of the SR&ED landscape, as well as enabling the offloading of claim preparation to allow claimants to focus in on their business.