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Boost Growth with SR&ED Consulting for Technology Companies

In a rapidly advancing digital world, technology companies play a pivotal role in transforming industries, shaping societies, and driving economic growth. To motivate technology businesses to create innovative solutions within Canada, the government has instituted the Scientific Research & Experimental Development (SR&ED) program, offering SR&ED tax incentives to qualifying projects. At G6 Consulting, we provide specialized SR&ED Consulting for technology companies, helping to streamline the claim process and optimize tax credit rewards.

Understanding SR&ED

The Scientific Research & Experimental Development (SR&ED) program is a federal tax initiative designed to encourage Canadian businesses to conduct research and development (R&D) activities. Depending on their financial context, businesses can receive refundable or non-refundable tax credits for their eligible R&D contributions, effectively supporting the growth and diversity of Canada’s technology sector.

SR&ED and the Technology Industry

As technology companies strive to propel the digital frontier through the development of inventive software, pioneering hardware, and unique IT solutions, they commonly engage in qualifying SR&ED activities. Recognizing this, the SR&ED program has been tailored to accommodate the unique R&D practices within this sector.

Qualifying SR&ED activities in the technology industry may include:

  • Design and development of novel software solutions and algorithms
  • Enhancement of existing technologies or computational techniques
  • Overcoming technical uncertainties involved in hardware development
  • Innovating data processing and cloud computing solutions

SR&ED Tax Credits for Technology Companies

Technology companies can avail of two types of SR&ED Investment Tax Credits (ITCs):

  • Refundable tax credits: These can be redeemed as cash refunds, offering immense help to startups and companies reporting low or no taxable income.
  • Non-refundable tax credits: These can be used to offset taxable income, bringing substantial savings to profitable organizations.

Canadian-controlled private corporations (CCPCs) can benefit from a 35% refundable ITC on the first $3 million of qualifying expenditure and a 15% non-refundable ITC on any exceeding expenditure.

Non-CCPCs, including foreign-controlled or publicly traded companies, can claim a 15% non-refundable ITC on all qualifying SR&ED expenditures.

Key Considerations for Technology Companies

To fully exploit the benefits of the SR&ED program, technology companies must:

  • Identify technological obstacles requiring targeted R&D efforts
  • Demonstrate that their work enhances technological knowledge in their respective sector
  • Maintain comprehensive documentation to support SR&ED claims, including experimental designs, test results, and technical reports

G6 Consulting: Expert SR&ED Partner for Technology Companies

At G6 Consulting, our understanding of the technology sector, complemented by our deep familiarity with the SR&ED program, enables us to provide top-tier consulting services. We facilitate the accurate identification of eligible projects and ensure that our clients realize the full potential of their tax credit opportunities.

Leverage the benefits of the SR&ED program to fuel innovation and growth within your technology firm. Get in touch with us today for specialised SR&ED Consulting for technology companies.

Get your SR&ED done right with G6 Consulting Inc – Canada’s R&D Tax Credit Experts!

G6 Consulting can work with you to build your claim, co-ordinate with your accountant, submit your claim and get you your cheque. No cost until you get paid

Check out our SR&ED overview page to learn more about SR&ED and how to qualify

Contact an Expert for a free no obligation consultation to see if your business can qualify

Check out our SR&ED calculator to get an idea of how big your SR&ED cheque could be