SR&ED Tax Incentive
To qualify for the SR&ED tax incentive, your business must be a for-profit company based in Canada. It should engage in basic or applied research aimed at achieving technological advancements. Additionally, your company must be involved in experimental development to address technological uncertainties and drive innovation.
What Are the Eligible Expenses for SR&ED?
Salaries
Paid to technical employees directly performing SR&ED activities.
Subcontractors
Must be located in Canada and involved in SR&ED projects.
Materials
Consumed during testing and directly contributing to R&D efforts.
Our Process for a Successful SR&ED Claim
Contract Signature
Begin your SR&ED journey with SRA.
Kick-Off Meeting
Meet with our consultant for an in-depth review (on-site or virtual).
Technical Review
Assess eligibility & expenses while maintaining continuous communication.
Claim Preparation
Develop technical reports and financial analysis for submission.
Audit Assistance
If reviewed, our team provides full support for tax and/or scientific audits.
Follow-Up
Track claims until final approval and tax credit payment.
Your SR&ED Advisor
Why Choose SRA
Industry Experts
Our team understands the technical nuances of various sectors, ensuring accurate claims.
Time-Saving Process
We handle the paperwork so you can focus on your business.
Optimized Claims
We structure your claim strategically to highlight innovation and maximize returns.
Long-Term Innovation Support
Beyond securing credits, we help shape future R&D strategies for success.
SRA by the Numbers
Clients Served
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Years of Experience
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Employees
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Insights
SR&ED Updates and Articles
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How to Strengthen Your SR&ED Claim and Get Approved Faster
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What is SR&ED, and how can it help my business?
SR&ED, or Scientific Research & Experimental Development, is a government incentive designed to support businesses investing in research and development. It provides tax credits and refunds to help companies offset development costs, increase cash flow, and encourage innovation. By reducing the financial burden of R&D, businesses can continue to push technological advancements and remain competitive in their industries.
What work qualifies for the SR&ED tax credit?
To qualify for the SR&ED tax credit, a business must engage in activities that involve developing new products, processes, or technologies. This includes overcoming technological uncertainties through experimentation and making significant improvements to existing products or systems that require innovation. These efforts must demonstrate a clear advancement in knowledge or technology to meet the program’s eligibility criteria.
What are the benefits of hiring an SR&ED consultant?
Hiring an SR&ED consultant offers several advantages, including the ability to identify all eligible expenses to maximize your claim. A knowledgeable consultant ensures compliance with CRA regulations, saving businesses time by handling the complex documentation process. Additionally, they provide audit support if required, making the claims process smoother and less stressful.
How long does it take to receive an SR&ED claim?
The time it takes to receive an SR&ED claim depends on whether the business is a first-time or repeat applicant. First-time applicants typically receive their claims within four to six months, while repeat applicants can expect a processing time of 60 to 120 days. However, the exact timeframe may vary depending on the CRA’s workload and the possibility of audits.
Why is the technical report important?
A technical report is a crucial part of the SR&ED claim process, as it demonstrates the project’s eligibility by explaining how it addresses technological uncertainties and contributes to innovation. A well-prepared report strengthens the claim and reduces the risk of an audit by clearly outlining the scientific or experimental development work involved.
Does filing for SR&ED increase my chances of a CRA audit?
Filing for SR&ED does not necessarily increase the likelihood of a CRA audit. While some claims are reviewed, having thorough documentation and a properly prepared submission significantly reduces the chances of an audit. Working with experts ensures that claims comply with CRA guidelines, minimizing any potential risks.
How do SR&ED tax credits work in Ontario?
In Ontario, SR&ED tax credits provide additional benefits on top of federal incentives. The province offers a 3.5% non-refundable SR&ED tax credit, as well as an additional 8-20% refundable credit for qualifying small and medium-sized businesses. These incentives make Ontario an attractive region for companies looking to invest in research and development, providing significant financial support for innovation-driven businesses.
