Canada Revenue Agency is offering internet-based interactive presentations similar to the SR&ED in-person information seminars. These webinars are free, and are a good opportunity to learn about the SR&ED program.
Upcoming English webinar dates are as follows:
- May 13, 2015 1:00 p.m. Eastern Daylight Time
- June 3, 2015 1:00 p.m. Eastern Daylight Time
- July 15, 2015 1:00 p.m. Eastern Daylight Time
- August 19, 2015 1:00 p.m. Eastern Daylight Time
- September 9, 2015 1:00 p.m. Eastern Daylight Time
- October 14, 2015 1:00 p.m. Eastern Daylight Time
- November 18, 2015 1:00 p.m. Eastern Standard Time
- December 2, 2015 1:00 p.m. Eastern Standard Time
- January 13, 2016 1:00 p.m. Eastern Standard Time
- February 10, 2016 1:00 p.m. Eastern Standard Time
- March 9, 2016 1:00 p.m. Eastern Standard Time
BC digital media companies can take advantage of SR&ED and the British Columbia Interactive Digital Media Tax Credit (BCIDMTC) together. If a company has offices in both Ontario and BC, it is possible to apply for SR&ED, OIDMTC, and BCIDMTC, as long as eligible projects are taking place in each province.
According to Craig Mulcahy, a Partner at BDO, Startups should investigate SR&ED because it is a good Year 2 cash flow tool for them- however, just because you make an app doesn’t mean that you are eligible for SR&ED tax credits. To avoid problems, it is recommended that start-up companies abide by the following guidelines.
1. Plan ahead- go through the CRA assessment tool and talk to CRA to get a quick assessment of whether you should apply. Ask an accountant or SR&ED specialist for a free consultation to see if it is worth proceeding.
2. Be realistic- be modest in your expectations; if your budget requires SR&ED funding to pay full-time staff, you may have problems.
3. Ensure that documentation is available- Learn about the documentation CRA requires and make sure you produce it throughout the year.
Quebec Finance Minister Carlos Leitao announced cutbacks to the Quebec SR&ED tax credit program during his December 2nd economic update. Although SR&ED is a federal program, each province or territory may also provide provincial or territorial tax credits to qualifying corporations carrying out SR&ED in their respective province or territory.
Effective immediately, minimum eligibility thresholds will be introduced for the Quebec provincial tax credit. The provincial government will be establishing a minimum expenditure threshold situated $50,000 (for companies with less than $50 million in assets) and $225,000 (for companies with assets totalling over $75 million). This threshold will increase linearly from $50,000 to $225,000 for companies with assets between $50 million and $75 million.
Secondly, Quebec’s enhanced SR&ED tax credit rates for research contracts, private partnership research, and fees paid to a research consortium will be standardized (to be set at same rate as researchers’ salaries) as of December 3, 2014.
The Canada Revenue Agency (CRA) has launched a new 4-part video series about the SR&ED program. The 4-part series covers the following topics:
- Who can claim SR&ED tax incentives
- What work qualifies for SR&ED
- How do you calculate your SR&ED expenditures and investment tax credit
- How to apply for SR&ED tax incentives