The Scientific Research and Experimental Development (SR&ED) tax credit is a business assistance program administered by the federal and provincial governments to encourage and support organizations to undertake research and development (R&D) activities that they may not otherwise be willing to attempt.
At the federal level, a 15% non-refundable tax credit on qualified expenditures is available. Certain Canadian-controlled private corporations are eligible for a 35% refundable credit on the first $3 million of qualified expenditures, and provincial tax credits, which may also be refundable, are also available. The provincial credits range from 4.5% to 30%.
The SR&ED program includes a rigorous regulatory regime, which means claimants need to focus on thorough eligibility assessments and substantiation of claims.
To help navigate these requirements, PwC has developed a methodology specifically for this purpose. We advise companies, from large multinationals to nimble start-ups and everything in between, on the program. In addition to supporting our clients with claim compliance and preparation, we assist with reviews associated with SR&ED tax incentive claims.
SR&ED is a government tax incentive program to support and motivate Canadian companies that conduct R&D in Canada. Some of the indicators of an eligible SR&ED project include:
Determining if a project is eligible for a SR&ED tax credit means showing a systematic investigation or search that’s carried out in a field of science or technology by means of experiment or analysis and that the work performed involves basic research, applied research or experimental development.
Establishing this involves answering the following five questions:
Our national team is made up of dedicated professionals who offer expertise from diverse disciplines, including many disciplines of engineering, science, mathematics, accounting and law. We also work closely with experts across PwC’s broader service offerings, giving you access to the best possible holistic advice.
We help companies in all industries, including agriculture, biotechnology, engineering and manufacturing, IT and software development, mining, multimedia, oil and gas, pulp and paper, and many others. There are virtually no industries where we have not helped claimants prepare and support claims.
Our goal is to help you secure the benefits from government incentives you are entitled to.
We’ll help you understand the tax credits, grants and other incentives that may be available to your organization and can assist with preparing the submissions and documents required to meet government requirements related to these programs. With our expertise, we can also help you put in place processes to meet compliance obligations associated with tax credits, grants and other incentives.
Whether you just want simple advice or whether you need a turnkey solution, we can offer the right services to suit your needs, including:
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