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As a Pan-Canadian consulting company that has been active for 25+ years in R&D tax credits, known as Scientific Research & Experimental Development (SR&ED), Emergex helps you optimize your claims. From planning and preparation to audit defense and coaching, our team of experts is committed to providing the best service in the industry. Several government programs in Canada support research and development (R&D) and innovation, among which SR&ED is the most important. This tax credit covers a vast array of activities. Maybe you are doing SR&ED without even knowing it?…
The Scientific Research and Experimental Development (SR&ED) tax credit is a government assistance program administered by the Canada Revenue Agency (CRA) that encourages Canadian companies of all sizes and many industries to conduct research and development (R&D) in Canada. This R&D tax assistance is among the most generous in the world. SR&ED is the largest Canadian business assistance program in the country. More than 3 billion dollars of the federal budget are redistributed each year to 18,000 Canadian companies.
The SR&ED is a government tax incentive program divided into 2 distinct tax incentives: The amount of eligible SR&ED expenditures can be used as a deduction against income in the current or future years. A SR&ED investment tax credit is deducted from income tax and, for some companies, can lead to a refund. The credit earned can be carried back up to three fiscal years or forward up to 20 years. In addition to these tax incentives, the program primarily encourages innovative companies to conduct R&D activities in order to keep Canadian companies as competitive as possible and to promote technological advances.
Your business’ SR&ED-eligible expenditures can be deducted to reduce their tax liability in the current year or can be carried forward indefinitely to reduce their tax liability in future years.
Your business can receive a SR&ED investment tax that may be refundable and/or used to reduce taxes payable. This tax credit can be reported in up to three previous fiscal years or up to 20 future years.
In addition to the tax incentives, the program primarily encourages businesses to carry out R&D activities to keep them as competitive as possible and to promote technological development.
As a SR&ED consulting firm that is most specialized in IT-related claims, we are proud to have a team of professionals who are also knowledgeable in E-business CDAE program and Industrial Research Assistance Program (IRAP) grants. We offer professional experience and customized training and coaching, audits, and webinars to provide expert knowledge and services and to successfully support your business throughout the process.
Since 1994, we have prepared over a thousand SR&ED projects with a historical success rate of 98%.
As a SR&ED consulting firm for technology companies, Emergex will provide reliable knowledge and expertise to guide clients towards a successful claim of their SR&ED investment tax credit.
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info@emergex.com
Besides preparing the SR&ED refundable tax credit claim, we offer a wide variety of services aiming at solidifying your R&D, processes and documentation, and maximizing the amounts you are entitled to.
Emergex SR&ED Subsidies provide training seminars to provide answers to crucial questions related to Scientific Research and Experimental Development.
Our canadian team of experts responds to questions that you risk losing your full potential for tax credits if you don’t know the answers to.
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info@emergex.com
Besides the scientific research and experimental development tax credit program (SR&ED), there are a lot of other programs that can help you develop your company. By entrusting Emergex with the responsibility of claiming your credits, you can make sure to maximize your financial results and productivity.
Emergex SR&ED Subsidies provide webinars to clients about up-to-date technology and finance-related topics and news such as Canadian governmental grants, AI technologies, etc. to name a few. Emergex SR&ED Consultants presents webinars specially designed for information technology companies and provides expertise such as the best practices to apply in specific situations as well as common mistakes to avoid in order to optimize your SR&ED tax credit claim process.
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info@emergex.com
If your corporation is in need of cash to finance your research and development, different options are available to you like banks and institutions specialized in financing tax credits. Please contact us for more information on financing availability.
Throughout the process, Emergex SR&ED Subsidies can help you get the tax credit loan you want by preparing a complete file in compliance with program criteria. Emergex then follows through on the request for financing including the technological preparation for the Preclaim Project Review, if required.
Email
info@emergex.com
Historical success rate
Years of experience
Maximum refund with SR&ED and IRAP combined
Maximum tax refund on eligible expenses
Companies claim SR&ED every year in Canada
The SR&ED program provides two tax incentives:
In addition to the tax incentives, the program primarily encourages businesses to carry out R&D activities to keep them as competitive as possible and to promote technological development.
The SR&ED investment tax credit (ITC) rates are different depending on the status of your company.
Canadian-controlled private corporations (CCPCs) can obtain a refundable tax credit at the enhanced rate of 35% for all qualified SR&ED expenditures up to $3 million. For expenditures above the $3 million threshold, you can also earn a non-refundable ITC at the prime rate of 15%.
Other companies, more commonly referred to as non-CCPCs, get a non-refundable credit at the base rate of 15% for qualified SR&ED expenditures. This credit reduces their tax liability.
Individuals and trusts can earn a refundable ITC at the basic rate of 15% for qualified SR&ED expenditures. Partnerships are not eligible for the SR&ED credit.
Similar to all other tax credits, the ITC earned for SR&ED can be maximized by taking into account all the eligible expenditures incurred. For this to happen, it is required to have a good and thorough knowledge of the program as well as of the definition of R&D activities and eligible expenditures.
The tax claiming process is very time-consuming and tedious, therefore, it is crucial to make sure that there are enough credits by the end to make it worthwhile before embarking on this process.
It is also important to keep in mind that in the province of Quebec, the first $50 000 of SR&ED expenditures are not qualified for the calculation of the tax credit. For smaller companies, this rule can make a big difference on the total amount of credits that you can claim.
The general idea that the SR&ED tax credit program is complex and difficult to understand is true. Frequent updates from the Canada Revenue Agency (CRA) reinforce this idea. It is therefore necessary to have relevant knowledge and expertise to minimize risks and maximize credits. In many situations, small and medium-sized businesses do not have an internal resource who is fully familiar with the SR&ED tax credit program. The assistance of a consultant to guide businesses through the process is crucial. An excellent consulting firm is composed of a multidisciplinary team capable of assisting and guiding its client in the technological, financial, and tax tasks of the claim. It accompanies the client throughout the process and delivers its beneficial advice and solutions to optimize the claim for credits as much as possible.
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We are proud to be a trusted partner for companies across Canada looking to leverage SR&ED, other tax credits and grants. Benefit from our quarter of a century of experience by asking our opinion about your past, present and future claims!
