5 things to know about Canada’s innovation tax incentives

By Richard Hoy, President of specialist R&D tax incentive consultancy Catax Canada
Share
Richard Hoy, President of specialist R&D tax incentive consultancy Catax Canada on the top 5 things to know about Canada's innovation tax incentives...

This year’s global pandemic has shaken industries all over the world — but many companies don’t realise they are owed tens of thousands of government dollars for past innovations. Here, Catax Canada's Richard Hoy gives you the Top 5 things you need to know about Scientific Research & Experimental Development tax incentives (SR&ED):

1) If your business has created inventions, innovations, products and processes that didn’t work — don’t worry! It can still qualify for SR&ED, you just need to have kept good records of expenditure. 

2) You can claim back 35 percent of qualifying R&D expenditures, up to a maximum of $3 million in each tax year, on qualifying products. The incentive is worth 15 percent of expenses above that amount.

3) You don’t have to be doing something totally new. Even improvements to existing innovations qualify for the SR&ED incentive. That will probably reduce the tax benefit but it also means much more of your work could qualify. 

4) All too often, innovation is seen as the preserve of science and technology firms. However, it’s not all about test tubes and lab coats. Every sector can claim and we are seeing more claims than ever in the fields of construction, farming and transport — even Canada’s wineries are claiming more than ever. 

5) Staff salaries DO count but that’s not all. Even contractor staff costs associated with third party firms that are helping you make your advances qualify as well. 

For more information on business topics in the United States and Canada, please take a look at the latest edition of Business Chief North America.

Follow Business Chief on LinkedIn and Twitter. 

Share

Featured Articles

How Should Corporations Approach Board Diversity?

Having a more diverse board is proven to enhance your organisation’s performance. But assembling a diverse board should be more than a box ticking exercise

These CEOs Increased Their Wealth by US$64bn in Just One Day

American share prices soared on Wednesday after Trump won the US election, putting billions into the pockets of the world’s biggest tech companies

Why Nissan CEO Makoto Uchida Is Halving His Salary

Nissan CEO takes 50% pay cut as car manufacturer unveils radical cost-cutting plan, including slashing 9,000 jobs worldwide

Who Will Take Over From Jamie Dimon as CEO of JPMorganChase?

Corporate Finance

Over Half of US CEOs Back Trump to Boost Global Economy

Leadership & Strategy

Why the Cloud is Murky for Microsoft CEO Satya Nadella

Technology & AI