Understanding the SR&ED program.

In this article, we intend to provide you with information that will provide a great understanding of the Scientific Research and Experimental Development program. We are going to answer the following questions.

  • What is SR&ED?
  • What are its objectives?
  • What are SR$ED objectives?
  • How does it benefit your business?
  • Which businesses are eligible for this program?

  • What is SR&ED?

The Scientific Research and Experimental Development written as SR&ED is a tax incentive program from the government that provides support and encourages its citizens to do research and development(R&D) in Canada. The program provides support to help you finance innovative initiatives by giving you tax relieves or advantages to making the process of initializing a little bit easy. This program lies in the field of science and technology which mostly involve experiments and analysis. It mostly affects the ICT companies which want innovative projects and need support from the government.

  • What are SR&ED objectives?

The program is aimed at encouraging businesses to run their innovations in compliance with tax laws, policies, and procedures, and ensure that they deliver timely SR&ED tax incentives openly and transparently.

Their campaign is direct to creating awareness for businesses. They want businesses to be aware of the program by ensuring that they access it easily and benefit from its services.

They also administer the program correctly, consistently, and fairly. Ensuring transparency, where businesses receive what they are entitled to.

  • How does it benefit my business?

The program does provide financial support in form of incentives that will fund your scientific innovations and technological advances that ensure your business remains competitive in its field.

It will put your business in a position that ensures it can get access to future SR&ED projects. These may include reducing tax liability in the future and gain benefits in form of refundable investment tax credit (ITC) all for your business.

  • Which businesses are eligible for this program?

This program is for any business carrying out Research and Development and is operating in Canada. It also involves expenditures for SR&ED outside Canada.

For a business to be eligible for this program it should be involved in basic or applied research or advanced technology aimed at developing a new product, devices, or materials.

If your business needs consultation on the Research and development procedures R&D Action Consultant provides the right information on how to go about it. This will give you the right direction on your business growth.