Understanding The Scientific Research and Experimental Development Program

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Expert Opinion
August 15, 2023

The Scientific Research and Experimental Development (SR&ED) program in Canada is a significant tax incentive initiative designed to encourage and support businesses in their pursuit of innovation. But what is it really? How can it help you and your business?

In this blog post, we will lay the foundation by providing a comprehensive definition of SR&ED and offer insights into its purpose. We will unveil the immense potential of SR&ED and its role as a game-changer for you and your business.

Defining SR&ED:

SR&ED, in simple terms,  is a tax incentive initiative that encourages Canadian businesses like yours to advance your technologies that drive innovation. Through SR&ED, you  can unlock the full potential of your company’s creativity and pave the way for exciting advancements in your industry, whether it is manufacturing, software development, agri-food, financing, video gaming or anything in between.

The purpose of SR&ED:

Thanks to SR&ED, companies are incentivized to invest in scientific research and experimental development. This leads to the creation of new knowledge, and technologies that can improve products, services, and overall business operations.

It is important to note that SR&ED isn’t just limited to traditional R&D activities. It’s a diverse program that also embraces experimental development and applied research. So whether you’re tinkering in the lab, devising new technologies, or solving technical challenges, you might be eligible for SR&ED benefits!

The benefits of SR&ED and how it works:

As an eligible business, you can claim qualifying expenditures related to your R&D activities through the SR&ED program. These expenditures typically encompass wages, materials, subcontractor costs, overhead.

Depending on your status, you may be eligible for either a non-refundable Investment Tax Credit (ITC) or an enhanced refundable Investment Tax Credit (ITC) if you are a Canadian-controlled private corporation (CCPC). Non-Canadian companies are also eligible for tax incentives and our team at Ayming with over 35 years of combined experience possesses the expertise to optimize your claims, ensuring you derive the maximum benefit from the incentives available to you.

The SR&ED program, with Ayming’s guidance, plays a crucial role in supporting innovation and your R&D efforts. By participating in the program, we can help you get a tax break and help empower your business to soar to new heights. SR&ED fosters a culture of innovation, encouraging you to explore new ideas, push boundaries, and create groundbreaking solutions that will boost your competitiveness in the global market and contribute to Canada’s economy’s growth.

Find out more about the SR&ED tax credit program and how we can help you get started.

Contact us today!

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