Federal Budget 2022 and SR&ED

On April 7th, the Canadian federal government has published its Budget 2022, which outlines commitments to Canada’s technology and innovation industries as well as the future of the SR&ED program.

The only reference to SR&ED in the Federal Budget 2022 is the following:

What is a "patent box"

A patent box—also referred to as intellectual property (IP) regime—taxes business income earned from IP at a rate below the statutory corporate income tax rate, aiming to encourage local research and development. Many patent boxes around the world have undergone substantial reforms due to profit shifting concerns.

R&D tax credits are another form of tax break to incentivize R&D. The main difference is that R&D credits effectively reduce the cost of R&D, while patent boxes reduce the taxes on profits resulting from R&D.

Another development in the 2022 Federal Budget in regard to research and development in Canada is the announced creation of a Canadian Innovation and Investment Agency.

Here is the excerpt from the Budget 2022:

The following example of how this agency will function is also provided:

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