Tax credits are the primary source of funding provided by the government. The federal budget alone allocates $7 billion each year towards financing R&D (public or private); of these $ 7 billion, $3 billion are allocated each year to the SR&ED tax credit program. In addition, there is approximately $1 billion in provincial funding also dedicated to R&D.
Moreover, the overview of tax credits is not limited to R&D, and the specifics of each program, including their constant evolution in application policies and recent jurisprudence, and potential interactions between the different programs, require strategic planning and constant support to maximize the benefit of each program.
Tax Credit for Scientific Research and Experimental Development (SR&ED)
As mentioned earlier, the Scientific Research and Experimental Development (SR&ED) tax credit program is the largest source of R&D funding in Canada. The SR&ED program is part of the Income Tax Act, and while all businesses have the right to claim credits for projects that meet the requirements of the program, it remains complex and evolves according to application policies and jurisprudence. Ayming offers SR&ED management services based on more than 15 years of experience within the program, and undertaken by internal technical and financial experts from all industries. Ayming's proven reputation allows us to actively participate in the drafting of application policies and the development of new CRA services. Ayming offers tailored service levels to meet each of your needs, whether you are a young company with no knowledge of the program or a large, experienced company:
Full management of the SR&ED claim process (all inclusive service): Management of the entire claim process, from the identification of eligible projects and expenses, to the defense of the file in case of verification, including the technical aspects of the program, the preparation of forms, and assistance with the submission.
A la carte services (pay only for what you need): This service allows more experienced companies to call on Ayming's expertise on specific issues. Thus, we offer the following services:
- Technical writing
- Financial preparation and preparation of forms
- Quality control of the claim
- Verification simulation
- Verification assistance
Training and workshops: Ayming offers training services for your teams, either to internalize the process or to update their knowledge on the latest SR&ED trends and jurisprudence. The training service is very flexible, and can be conducted either onsite or by webinar, and adapted to an audience of a few people to hundreds.
E-business Tax Credit (CDAE)
The e-business tax credit is exclusive to Quebec. This program provides a 30% tax credit up to $ 25,000 per eligible employee to firms specializing in certain areas of information technology. Ayming has been a pioneer of the program, having submitted claims since its inception, and our teams have constant interactions with Investissement Québec to map the evolution of the program's eligibility context. This program is constantly evolving in order to keep pace with technological developments. Its regularly adjusted criteria, and its permanent nature since 2015 have lead to a change of direction, with e-business having previously been merely an an incentive in the past and now becoming a fully established program subject to the same control requirements as other tax credits.
In addition, given the interactions but also the differences between the CDAE and, for example, SR&ED, it is important to have an overall maximization strategy for this program.
To help you benefit from the e-business tax credit, Ayming offers:
Complete management of the CDAE claim process (all inclusive service): Management of the entire complaint process, from the identification of eligible activities and employees, to the defense of the file during the audit
A la carte service (pay only for what you need): This service allows more experienced companies to call on Ayming's expertise on specific issues. Thus, we offer the following services:
- Analysis and positioning of eligibility
- Financial preparation and preparation of forms
- Quality control of the request
- Audit of maximization of CDAE and other tax credits
- Audit simulation
- Audit assitance
Multimedia Tax Credit
Several provinces offer tax credits for multimedia, digital and interactive activities, however each program has its own subtleties and changes. In addition to the need to maximize these tax credits individually, it is important to have a comprehensive strategy to allocate spending in the right provinces, but also to have a strategy to maximize the interactions between these tax credits and others such as SR&ED. To help you build a solid strategy, Ayming offers complete multimedia tax credit management as well as a la carte services to meet your specific needs.
Design Tax Credit
This program, exclusive to Quebec, provides a tax credit of up to 24% for eligible design activities. This program contains 2 panes: a fashion design pane and an industrial design pane. This program is routinely used by industrial companies, since it allows them to fund activities that could be considered routine under SR&ED and would therefor not be eligible as part of a SR&ED claim. In addition, recent developments to the SR&ED program have made the design tax credit program increasingly attractive. Ayming offers both all inclusive and a la carte services to help you benefit from the design tax credit while continuing ot maximize your other funding.
Deduction for Innovative Manufacturing Societies (DSI)
This tax deduction, effective January 1, 2017, is commonly referred to as the "Patent Box". It is intended to reduce taxable income by taking into account income derived from innovation. The relative novelty of this program, as well as its impact on the innovation strategy of your company, requires the use of experts like Ayming, who can assist you in the preliminary phases of the program (innovation strategy, intellectual property, SR&ED) as well as the downstream phases (maximization of deduction calculation, audit defense).
Other Tax Credits and Special Mandates
If there is another tax credit or deduction for which you have questions or the need for expertise, do not hesitate to contact us. Our expert knowledge reaches beyond the categories mentioned above, and we will be pleased to assist you.