Scientific Research and Experimental Developmental (SR&ED) Tax Incentive

Leading the way with innovative integrated solutions in tax incentive programs

About the SR&ED Program

The SR&ED program is a tax incentive program administered by the Canada Revenue Agency (CRA) that encourages Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada. The SR&ED program gives claimants cash refunds and tax credits for their expenditures on eligible R&D work done in Canada.

The incentive and benefits

The government of Canada provides the most generous after-tax cost incentives for companies conducting industrial and technological research and development activities amongst all G-8 nations. The SR&ED program has awarded more than $3.6 billion dollars  to more than 20,000 claimants in cash and tax credits as of 2012 and is the largest federal program supporting industrial R&D in Canada.

SR&ED Program Facts

Companies can get back up to 68% of qualifying payroll salaries

  • Companies can get back up to 35% (federal) and 10% (provincial) of spending on qualified expenditures.
  • Qualified expenditures include employee and owner’s salaries, subcontracting fee, materials, equipments and overhead.
  • 75% of all SR&ED tax credits are awarded to small and medium sized businesses.
  • The tax incentive program has no cap.
  • Business of any size can qualify.

GRS SR&ED experts can help you:

  • Identify and qualify SR&ED projects
  • Maximize refund potential
  • Prepare technical documentation
  • Review previously filed claims
  • Appeal previously rejected claims
  • Identify additional tax credits

The GRS team has the expertise to assess thoroughly your potential for a successful recovery. Ultimately, the key to a successful SR&ED application depends on three key elements:

  • The insight to see a promising refund potential
  • The ability to capitalize on the opportunity
  • The skills to use the best strategy when dealing with the government

GRS harnesses all these elements for the benefit of our clients. The outcome: A successful recovery time and time again.

Understanding the SR&ED process and GRS’s client advantage: