Scientific Research and Experimental Development SR&ED tax credit programDo you need help regarding the SR&ED tax credit program? As a Pan-Canadian company that has been active in R&D tax credit (also known as Scientific Research & Experimental Development (SR&ED)) consulting for 25 years, Emergex helps you optimize your SR&ED funds. From claim preparation to consulting and training, our team of experts is committed to providing the best and reliable services. Several programs exist in Canada to support the costs of research & development (R&D) or innovation. The most important one is the Scientific Research & Experimental Development (SR&ED) tax credit program. This research tax credit in Canada covers a vast array of activities. You may be doing SR&ED without even knowing it…
The Scientific Research & Experimental Development (SR&ED) Tax CreditBasic or applied research undertaken to advance scientific knowledge and experimental development done to achieve a technological advancement (with the goal of creating new products, devices, materials or processes, or to improve, even incrementally, those that already exist) are all activities that can qualify you for this financial assistance. Thanks to the SR&ED tax credit program, you can receive a refund for salaries, contracts for SR&ED work done on your behalf, payments to universities or to research institutes, materials and overhead expenses.
What is the SR&ED grant?The Scientific Research and Experimental Development (SR&ED) Tax Credit Program is a government assistance program administered by the Canada Revenue Agency that encourages Canadian-controlled private corporations (CCPC) of all sizes, and in all sectors to conduct research and development (R&D) in Canada. This tax assistance is based on very generous tax incentives, the best known of which is a SR&ED refundable tax credit, making it the largest Canadian business assistance program in the country. More than 3 billion dollars of the federal budget are redistributed each year to Canadian companies.
Types of SR&ED tax incentivesThe 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.
SR&ED refundable tax credits: what your business can earn?
- 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.
Emergex SR&ED Subsidies helps you optimize your SR&ED refundsAs 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.
Claim the SR&ED investment tax creditSince 1994, we have prepared over a thousand SR&ED projects with a historical success rate of 98%.
- We identify projects that fulfill the requirements of the scientific research and experimental development tax credit program
- We validate the projects’ eligibility
- We carry out the technical interviews
- We draw up the technological descriptions
- We document information concerning your research and development expenses and investments
- We prepare the pertinent fiscal annexes
- We educate your employees and assist you in case of an inspection or audit
Consulting and trainingBesides 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.
- We help you establish a modern documentation process that fulfills Canada Revenue Agency requirements
- We address legal, fiscal, international issues, as well as intellectual property matters
- We plan for the long term to progressively increase the amounts of SR&ED that you can claim
- We can help you leverage resources and expenses to be claimed
- We can increase the awareness of your employees regarding SR&ED as well as train them regarding the process of preparing a claim
- We offer seminars on a variety of subjects such as: intellectual propriety, the impacts of the federal budget on research and development, the evolution of the tax credit for SR&ED program, and so on…
OptimizationBesides 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.
- We identify other programs that you may be eligible for
- We calculate your potential claim for each program
- We identify the optimal combination of programs
- We maximize your benefits by taking into account the effect of taxation as well
SR&ED FinancingIf 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.
- We help you choose the best SR&ED credits financing solution in accordance with your particular situation
- Our reputation allows us to issue letters of comfort that are recognized by most financial institutions
- We prepare the technological descriptions required for prefinancing needs
- We can recommend you to our partners specialized in tax credits financing