SR&ED
The Scientific Research and Experimental Development (SR&ED) Program encourages Canadian businesses in all sectors to conduct research and development (R&D) in Canada. Each year, CRA provides more than $3 billion in tax incentives to over 20,000 claimants.
SR&ED definition :
Systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis :
- basic research, namely, work undertaken for the advancement of scientific knowledge without a specific practical application in view
- applied research, namely, work undertaken for the advancement of scientific knowledge with a specific practical application in view, or
- experimental development, namely, work undertaken for the purpose of achieving technological advancement for the purpose of creating new, or improving existing, materials, devices, products or processes, including incremental improvements.
Claiming SR&ED tax credits
Our SR&ED claim preparation service
- Diagnosis of your business projects;
- Validation of SR&ED activities;
- Identify eligible expenditures;
- Consolidate expenditures in our financial models;
- Technical write-ups of eligible projects according to Canada Revenue Agency’s requirements;
- Offer an advisory service to support your technical documentation;
- Prepare SR&ED prescribed tax forms;
- Represent your claim with the tax authorities.
New in 2021
The new guidelines released by the CRA provide revised explanations of the program requirements and provide more detail on what constitutes eligible work. Note that the definition of SR&ED has not changed.
Work eligibilityThe new guidelines aim to identify WHY and HOW SR&ED work is performed; these are two key requirements that must be met for the work to qualify as SR&ED.
The “Why” and “How” Requirements Why did you undertake your work? Work must be performed for the advancement of science or in the interest of technological progress. The key element is the production or discovery of knowledge* that advances the understanding of science or technology. *Conceptual knowledge*, such as theories or predictive models, rather than purely factual knowledge, such as data or measurements.
How was your work done? The work must be carried out by means of a systematic investigation or research of a scientific or technological nature, carried out by way of experimentation or analysis. This work must be carried out with the aim of producing or discovering knowledge or technological know-how in order to create new materials, devices, products or processes or to improve existing ones.
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