What Is The SR&ED Tax Credit?

Scientific Research and Experimental Development (SR&ED) is a tax incentive provided by the government of Canada to businesses for conducting research and development (R&D) in Canada. SR&ED tax credit eligibility extends to all kinds of businesses operating in Canada and investing in R&D in Canada. If the R&D project has any of these features, it might be eligible for the CRA SR&ED claim:

Project compliant with environmental regulationsResolving technical issues or consultation studiesCapital spending for your R&D projectRevamped usage of existing techDevelopment/ improvement of products/ processStrategies for reducing costsIntegrating the latest tech with old/obsolete facility

If your research work is eligible for an SR&ED claim by CRA, your business can use multiple SR&ED expenditures and reduce its net income for all tax purposes in the current year. Otherwise, it can also deduct the expenditure for a future year. Find out if your business is eligible for an SR&ED Canada claim. Get in touch with an expert CPA in Surrey Canada today and save money on taxes today!