Get the credit you deserve! Take full advantage of provincial and federal SR&ED tax incentives

Detailed analysis yields unexpected refunds

Many companies are either unaware of the existing federal and provincial Scientific Research and Experimental Development (SR&ED) tax credit programs or unfamiliar with the criteria and activities which qualify for claims. These credit programs are available to all companies that operate in Canada – large or small, family-run or foreign-owned.

Potential activities that qualify for SR&ED tax credits include:

  • Manufacturing unique or modified products
  • Planning to enhance the manufacturing process by adding equipment or developing your own
  • Testing or building new types of material or prototypes to improve your products
  • Designing and developing custom software solutions

These programs not only cover traditional laboratory research, they extend to work performed in textiles, software, material processing, food science, physical science and product manufacturing industries.

Richter’s multidisciplinary team of tax professionals applies its knowledge and expertise in engineering, accounting and tax to facilitate the SR&ED claim process. Renowned for being entrepreneurial in our approach, we find creative solutions and are always looking for ways to strengthen your tax position.

2 team members walking and discussing SR&ED tax incentives

Deriving maximum benefit

Canada Revenue Agency (CRA), which administers the federal program, receives SR&ED tax credit claims from more than 25,000 companies each year. A large number of these claims result in tax credit refunds – money that can be used to further finance projects or improve your overall financial position.

SR&ED work performed by companies operating in Quebec may be eligible to receive up to 30% of their labour cost, while in Ontario, up to 11.5% of eligible expenses attributed to qualified SR&ED may be reimbursed. Federally, up to 35% of qualified SR&ED labour, material and sub-contractor expenses may be eligible for refundable tax credits.

As a result, when factoring in SR&ED-related overhead expenses and combining the provincial and federal credits, there is a potential to recover almost up to 75% of SR&ED dollars in tax credits and refunds in Quebec.

Our familiarity with these programs, tax laws, general and industry-specific interpretation circulars and CRA processes enables us to work closely with your accounting and technical departments to provide comprehensive service that includes three main steps:

  • Identifying the SR&ED activities that would qualify for a tax credit
  • Preparing and submitting the technical and financial components of the SR&ED claims
  • Supporting and guiding you through CRA audits

In addition, our professionals can train your company’s staff on best practices for documenting future claims.