Updated on December 31, 2020
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Updated on December 31, 2020
SRED/SR&ED stands for Scientific Research and Experimental Development. This is a Canadian government project that began in the 80s whose aim is to support corporates, people or partnerships that perform scientific research or experimental development. The tax incentive project is carried out by the Canada Revenue Agency (CRA) who insist that all claimants submit their documents 18 months after the active fiscal year. The percentage to be refunded depends on the taxable income.
This article is aimed at enabling the reader understand more about the eligibility for SRED/SR&ED. It is important to note that any company, whether small or big, can benefit from this as long as it carries out scientific and technological research and development.
Criteria for eligibility
There are three criteria that will help you know whether you are eligible. They are:
Eligibility questions
It is vital to identify whether one is eligible before filing the claim. Ask the following questions to identify whether you are eligible:
Conclusion
Before filing for SRED/SR&ED, it is very important to understand what it involves. This is the reason why engaging the services of a professional is a good idea, especially if you do not understand much about it or it is the very first time to file a complaint. While filing the claim, ensure all costs are included. Do not fail to include even the wages and this is why proper documentation is very important.
The profitability of the company will be crucial in determining the amount to be paid. Credits to be given will also be highly dependent on the amount of money the company has used for research and experimental development consulting companies in Toronto .