R&D Crédit d’impôt RS&DE RSDE Équité Salariale Comptable Fiscaliste Plan d’affaires Plan stratégique Exportation CDAE Avis au lecteur

The eligibility criteria for R&D tax credits / SR&ED tax credits

 

Companies eligible for R&D tax credits / SR&ED tax credits

Canadian based private corporations, and sole proprietorships, partnerships, trusts and Canadian public companies are eligible for R&D tax credits / SR&ED tax credits.

 

Activities and projects eligible for R&D tax credits / SR&ED tax credits

Experimental development of new materials, devices, products or processes or the improvement of existing ones where the objective is for technological advancement;

Applied research with the primary goal of contributing to the advancement of scientific knowledge and ultimately leading to the development of a specific practical application;

Basic research to advance scientific knowledge without targeting a specific practical application;

Support for the engineering, design, operations research, mathematical analysis, computer programming, data collection, testing or psychological research are also accepted provided that the work is proportionate with, and directly supports, the eligible scientific research and experimental development, applied or basic research.

 

The three (3) conditions required to be eligible for R&D tax credits / SR&ED tax credits

There are three (3) conditions required for a project to be considered as scientific research or experimental development (SR&ED):

• There must be a scientific and / or technological progress / advancement,

• There must be scientific and / or technological uncertainties / barriers,

• There must be a scientific and / or technical content.

The activities necessary to achieve the scientific / technological progress are also needed to overcome the Scientific / technological uncertainty and need to be conducted through a systematic investigation by qualified personnel.

 

The fourth criterion often overlooked

• The scientific documentation and financial records.

Although this fourth criterion is not really publicized in the requirements of the R&D program / SR&ED program, it is important to accumulate evidence to show that you have carried out activities and incurred costs in attempting the scientific or technological progress / advancement.

  

 


Pro Gestion inc. is an industry leader in the SR&ED tax credit program / R&D tax credit program since 1993, recognized for the superior quality of our work with SME’s in Quebec.

 

Français