The ITC for Scientific Research and Experimental Development (SR&ED) is the main tax incentive in Canada and is aimed at supporting and stimulating companies’ research and technological innovation initiatives. May be earned in the year on qualified SR&ED expenditures of a corporation, ranging from 35% for Canadian-controlled private corporations (CCPCs) to 15% for other companies.
Any industrial, commercial, or agricultural company subject to Canadian taxes and permanently established in Canada can benefit from the program. Around 75% of claimants are small and mid-sized businesses.
We offer our customers a global approach to R&D funding by being present in 14 countries around the world: Belgium, Brazil, Canada, Chile, Colombia, France, Germany, Italy, Japan, Portugal, Singapore, Spain, the United Kingdom, and the United States.
R&D tax credits available at the provincial level can be combined with the federal incentive.
Most provinces and territories forming the regional governments of Canada offer additional programs to support SR&ED that supplement the federal program.
These provincial R&D tax incentives are offered to all companies with specific rates depending on the type of company, with eligible SR&ED activities being the same as those defined at the federal level.
See below details of the incentives offered by each province:
Innovation Employment Grant: Refundable tax credit for eligible expenses incurred in Alberta by a company permanently established in this province.
Eligible expenses
The same eligible expenses as the federal program and the ITC.
Rate
Corporation’s base level of spending = corporation’s average qualifying R&D spending over the previous 2 years. The grant provides benefits on up to $4 million in annual R&D spending.
Refundable tax credit for CCPCs up to $3,000,000 of expenses, and non-refundable otherwise, for expenses incurred in British Columbia by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in British Columbia.
Rate
10% for all companies.
Refundable tax credit for eligible expenses incurred in Manitoba with an eligible research institute by a company permanently established in this province. 50% refundable for internal R&D expenses.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Manitoba. Capital expenditures are also eligible.
Rate
15% for all companies.
Refundable tax credit for eligible expenses incurred in New Brunswick by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in New Brunswick.
Rate
15% for all companies.
Refundable tax credit for eligible expenses incurred in Newfoundland and Labrador by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Newfoundland and Labrador.
Rate
15% for all companies.
Refundable tax credit for eligible expenses incurred in Nova Scotia by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Nova Scotia.
Rate
15% for all companies.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Ontario.
Refundable tax credit for eligible R&D salary expenses incurred by the corporation.
Eligible expenses
Rate
Other tax credits at 14%, refundable
Refundable tax credit for CCPCs up to $1,000,000 of expenses, and non-refundable otherwise, for expenses incurred in Saskatchewan by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Saskatchewan.
Rate
10% for all companies.
Refundable tax credit for eligible expenses incurred in the Yukon by a company permanently established in this province.
Eligible expenses
Same eligibility as the federal SR&ED, considering only expenditures incurred and work performed in Yukon.
Rate