Have Canada’s top SR&ED experts defend your claim
In an ever-increasing competitive landscape, service businesses are constantly striving to deliver exceptional services by leveraging innovative technologies and improving customer experiences. To incentivize such efforts, the Canadian government established the Scientific Research & Experimental Development (SR&ED) program, which extends significant SR&ED tax incentives for eligible research and development activities. At G6 Consulting, we specialize in offering SR&ED Consulting for service businesses. Our expert consultants guide your company through the intricate claim process, helping you understand the program’s nuances and maximize your tax credit opportunities.
The Scientific Research & Experimental Development (SR&ED) program is a federal tax initiative formulated to promote innovation within Canada. It encourages businesses to engage in research and development by offering substantial tax benefits. Depending on the nature and income of the company, businesses can receive either refundable or non-refundable tax credits for prospecting technological advancements and uncertainties. This program plays a pivotal role in fostering a robust national ecosystem of innovation, technological advancement, and economic growth.
Service businesses are a hotbed of innovation. Traversing sectors as diverse as IT, hospitality, healthcare, and finance, service providers consistently work towards refining their customer service, streamlining operations, and exploiting emerging technologies to stay ahead of the curve. The SR&ED program acknowledges this intrinsic propensity to innovate by offering tax incentives designed to reward R&D initiatives in the service sector.
Qualifying SR&ED activities in the service sector may include but are not limited to:
The recognition and acknowledgment of this wide range of activities highlight the program’s comprehensive approach to fostering innovation.
A crucial aspect of the SR&ED program is the Investment Tax Credit (ITC), which can be of two types:
Canadian-controlled private corporations (CCPCs) have an advantage, with the ability to secure a 35% refundable ITC on the initial $3 million of qualified expenditure and a 15% non-refundable ITC on any additional expenditure.
In contrast, non-CCPCs, which may include foreign-owned or public trading companies, can acquire a 15% non-refundable ITC on all eligible expenditures. This illustrates the program’s inclusivity, covering a broad spectrum of businesses.
Fully exploiting the SR&ED program requires a detailed understanding of its rules and regulations:
At G6 Consulting, we offer a unique blend of in-depth sector-specific knowledge and extensive experience with the SR&ED program. We provide precisely the guidance service businesses need to navigate the SR&ED landscape, assisting them in accurately identifying projects eligible for tax credits and enabling maximum returns on their research investment.
Let us accompany you on your journey of continual innovation. Reach out to us today for specialized SR&ED Consulting for service businesses and elevate your business to new heights of success.