Reimbursement rates - SR&ED Tax Credits
The SR&ED tax credits reimbursement rates will vary primarily according to the status of your company. If your company is incorporated rather than registered, the reimbursement rates of expenditures in research and development (R&D) will nearly double. In fact, if you invest significantly in SR&ED and your company is registered, you may want to consider incorporating to get the most out of the SR&ED tax credits program. Also, the size of your income, your assets as well as the type and structure of your business can have an impact on the reimbursement rate and its distribution (credits versus checks). In all cases, our SR&ED tax credits expert consultants will be able to advise you.
The table below outlines the main expenditures eligible for SR&ED tax credits as well as the corresponding reimbursement rates.
Eligible Expenditures | Below 50,000$ in expenses | Above 50,000$ in expenses |
---|---|---|
Salaries for SR&ED | 54% | 74% |
Materials | 35% | 35% |
Outsourcing - SR&ED activities | 28% | 38% |
Outsourcing - Support activities | 0% | 10% |
Support salaries | 0% | 20% |