Scientific Research & Experimental Development
SR&ED tax credits are provided by both federal and provincial governments in Canada to encourage companies to invest in innovation. Up to 68% of eligible costs of innovation can be claimed to federal and provincial tax agencies for refundable tax credits.
Bateman Viner has over 20 years of experience helping clients large and small recover a significant amount of their SR&ED costs from CCRA.
Who is eligible?
What projects are eligible?
What costs are eligible?
In general, the following costs can be claimed for eligible projects:
SR&ED Labour Costs
These are the direct labour costs involved in your project. To claim these properly, you need to have a timesheet system in place to track effort spent on each eligible project by each of your employees.
SR&ED Overhead
You have the option of using traditional overhead costs or the proxy method. The proxy method allows you to claim 65% of your base labour cost, but may limit other expenses that are eligible.
Materials
Materials consumed or transformed in the creation of prototypes.
Sub-contractors and Third Party Payments
The full amount of eligible payments to sub-contractors, universities and public research institutions.
Capital Expenses and Lease Costs
Capital equipment used on eligible projects can be claimed with certain restrictions.
SR&ED Labour Costs
These are the direct labour costs involved in your project. To claim these properly, you need to have a timesheet system in place to track effort spent on each eligible project by each of your employees.
SR&ED Overhead
You have the option of using traditional overhead costs or the proxy method. The proxy method allows you to claim 65% of your base labour cost, but may limit other expenses that are eligible.
Materials
Materials consumed or transformed in the creation of prototypes.
Sub-contractors and Third Party Payments
The full amount of eligible payments to sub-contractors, universities and public research institutions.
Capital Expenses and Lease Costs
Capital equipment used on eligible projects can be claimed with certain restrictions.
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