As reported by NorthBridge Consultants, Canada’s SR&ED program currently offers a 35% refundable tax credit to Canadian Controlled Private Corporations (CCPCs) on the first $3 million of eligible expenditures, and a 20% non-refundable tax credit to non-CCPCs. But how does the SR&ED program compare to other research and development tax incentive programs around the world?
United States
United States’ Research and Experimentation (R&E) tax credit provides a 20% tax credit for qualified research expenditures above a set threshold. The US also provides an alternative simplified research credit (ACS), which is a 14% tax credit for qualified research expenditures exceeding 50% of the average qualified research expenditures for the preceding 3 taxable years.
France
The Crédit Impôt Recherche (CIR) provides a tax credit for 40% of eligible R&D expenses in the first year, 35% in the second year, and 30% in subsequent years up to €100 million. The CIR is deducted from the tax to be paid or refunded at the end of the third year.
Ireland
Ireland offers a tax credit of 20% to 25% for companies performing research and development.
Other countries that offer R&D tax credits include Australia, Austria, Belgium, Italy, Japan, Korea, Portugal and Spain.
