SR&ED or SRED is the “Scientific Research and Experimental Development” program that is offered by the Federal Government of Canada. SR&ED consultants widely consider the SR&ED incentive program to be generous to companies that are able to partake in it because it allows companies, large or small, to benefit by giving them the ability to conduct research and development endeavors on Canadian soil. With our calculator you can determine roughly what type of SR&ED claim you can expect.
Expenses that Qualify for SR&ED
- Any cost of materials for SR&ED related work
- Any benefits or Salaries that are paid to your Research and Development team
- Any payments you have made to third parties
- Expenses related to trial runs on taken place on test equipment
- Also contractor related expenditures
Frequently Asked Questions
SR&ED or SRED is the “Scientific Research and Experimental Development” program that is offered by the Federal Government of Canada.
The Scientific Research and Experimental Development (SR&ED) incentive is most beneficial for Canadian owned and run private corporations. Private Canadian corporations can receive SR&ED tax credits for an immense amount of 35% of qualified expenses up to the first $3 million. For qualified expenses of over $3 million, private Canadian corporations can receive incentives of 15%. Alternate Canadian corporations like partnerships, public companies, trusts, and more, can receive tax incentives that equate to 20 percent of eligible expenses for SR&ED conducted within Canadian borders.
It is vital to find a SR&ED consultant that understands all the expenses that can be claimed and the credits that a corporation will thereby benefit from. So what exactly are these expenses? Expenses that can be included in your SR&ED claim are:
- Wages of employees directly associated in SR&ED activities as well as some of their support staff
- Consultants that are directly working on activities associated with the SR&ED claim
- Other costs such as overhead
- Expenses incurred due to the SR&ED project
- Cost of capital for equipment that is bought in the attainment of technological advancement