SR&ED (or SRED) is short for Scientific Research and Experimental Development. It is a federal tax incentive program that comes in three forms: an income tax deduction, an investment tax credit (ITC), and, in certain circumstances, a refund.
The purpose of SR&ED is to encourage Canadian businesses of all sizes and in all industries to conduct research and development (R&D) in Canada. Eligible businesses can get a refund of up to 64% of eligible expenses. Over $3B tax incentives are disbursed to more than 20,000 applicants through SR&ED Program annually.
The SR&ED program is available to any business operating and carrying out R&D (Research and Development) in Canada. The qualified R&D work/project can be either basic research, applied research, or experimental development to meet the requirement of the SR&ED program. To start with, you can take a quick self-assessment to check your eligibility or get more information.
To apply for SR&ED tax incentives, file the applicable prescribed forms along with an income tax return are required:
-Form T661, Scientific Research, and Experimental Development (SR&ED) Expenditures Claim
-Form T2SCH31, Investment Tax Credit – Corporations, or Form T2038 (IND), Investment Tax Credits (Individuals)
-Supporting documentation, such as technical report
The reporting deadline for corporations is 18 months from the end of the tax year in which you incurred the expenditures.
Other support documents may be required during a review:
– Related records and documents to support financial transactions include financial statements, ledgers, journals, and vouchers, including electronic records.
– Source documents such as receipts, contracts, and general correspondence.
– Related documents and information that support the specific expenditures claimed on Form T661.
A professional advisor can make SR&ED easy and successful to claim.
Reach out to us today for a free consultation with an SR&ED specialist. Let’s Talk.
More information to guide you file your SR&ED application.
Generally, there are two calculation methods at your disposal and you can choose either of them to estimate and calculate your SR&ED claim:
The traditional method will require you to itemize your overhead and related expenditures.
This is a simplified method that allows you to claim around 60% of salaries and wages for employees who are directly involved in your SR&ED-qualified work.
However, most companies choose the second method to prepare and proceed with their application since it is easier to estimate and keep the record. Quickly calculate the amount that you can claim from the SR&ED project.
Generally, all kinds of businesses could apply for SR&ED with eligible projects. But there are three types of companies that are not recommended to apply:
1. Non-CCPCs (Non-Canadian-controlled private corporations)
2. Non-profit Organizations or companies not paying taxes to the Government of Canada
3. Public Companies
You might be able to apply for the SR&ED tax credit if your business belongs to the following business sectors:
– Real estate
Not sure if you are eligible? Talk to us and check your eligibility.
In general, Mergers and Acquisitions (M&A) are the processes by which two or more companies combine into one to expand a company’s reach or gain market share to maximize the business potential.
Mergers occur when two or more entities join together to create a new organization to have a larger market share and leverage both advantages for further development. In contrast, an acquisition occurs when one company takes over another business and brings it into its operations. And it usually happens between small businesses and medium/large businesses. The objective of the acquisition is also to find a better way for further development.
The M&A process varies from case to case. In other words, time can vary substantially according to the type/status of the business, the location of the company, and the objective/complexity of the deal. An estimation could be provided after consultation.
As a financial consulting company with solid technical backgrounds, Requiti Capital put clients’ confidentiality first. Therefore, we will start from our service with the non-disclosure agreements and will keep all the materials and documents in a secure data room to ensure safety and confidentiality.
As a full-stack financial consulting company, Requiti Capital’s professionals have solid experience and proven success in M&A. Apart from our standard M&A service, we also provide grant consulting, investment service, and other related services to maximize values for our clients.
Companies are always searching for new technologies to support and improve their businesses. And you may need professional suggestions for choosing a new platform, switching some traditional businesses to online businesses, or exploring new technical solutions. That’s tech consulting focusing on.
Requiti Capital can help pivot to new technologies while minimizing the negative impact on your business. We guide you through the journey of change and work out a roadmap covering your workforce and processes.
Get Requiti Capital working for you
Our team is ready to show how we can help your business get the tax credits it deserves.