R&D Tax Credit FAQ’s

Common Questions on R&D Tax Credits

For over 30 years, RDP Associates Inc. (RDP) has assisted businesses in obtaining R&D Tax Credits and financial assistance. Our highly qualified and professional staff have extensive experience with preparing applications for R&D Tax Credits.

The expert R&D consultants on our team have answered some commonly asked questions on eligibility and how RDP can help you maximize your tax credits.

R&D Tax Credit FAQ’s

What is R&D Tax Credits?

The Scientific Research and Experimental Development Program (SR&ED) is a federal tax incentive program designed to stimulate innovation through R&D in Canada

How much money can I get back?

The tax credit amounts depend on your corporate ownership structure. Federal, refundable tax credits are available for Canadian-controlled private corporations (CCPCs) at a rate of 35%. Federal, non-refundable tax credits are available to foreign-owned, publicly traded sole proprietorships and partnerships at a rate of 15%. Additional, provincial tax credits are available in many provinces.

What type of work is eligible for R&D Tax Credits? I am not sure we do R&D!

R&D Tax Credits eligibility is not limited to pure research. If your company has to overcome technological challenges while developing or improving new products and processes (in a systematic way), you could be eligible for R&D Tax Credits. These challenges may arise out of limitations or constraints with current processes, systems, cycle time, integration or scalability, to name a few. If you cannot find a solution to these challenges in the public domain or are using your current, internal knowledge base, this is where your R&D Tax Credit claim could begin.

When do I have to file the claim?

SR&ED claims are due 18 months following your fiscal year end. For example, companies with a year end of December 31, 2017 must file their SR&ED claim by June 30, 2019. All required forms must be filed by this date in order to be considered for the credit and there are no exceptions. However, claims filed within 6 months of the fiscal year end are processed faster by CRA.

What if I already receive some sort of government grant or funding?

Many companies apply for and receive funding from other government sources. With careful planning, businesses can take advantage of several available programs to maximize the funding they receive. RDP’s team of government grants and R&D tax credit specialists can work with you to ensure that you maximize your overall returns.

How do I apply?

Applying involves submitting SR&ED specified forms as part of your tax return or amended return. The claim itself consists of two parts:

  1. A technical description detailing your SR&ED projects, and
  2. Related financial information for which you are claiming credits

Contact Us To Schedule An Appointment For A Free Assessment

Contact us to schedule an appointment for a Free Assessment. We can help determine your eligibility for tax credits and grants and share more information about innovation funding.