By Geoffrey Tarrance
Canada really believes in the importance of research to its economy and fully supports, via tax incentives most companies that want to undertake research within Canada.
Canada's main tax incentive is called the SR&ED Program or the Scientific Research and Experimental Development program. It is a simple tax that provides tax credits for allowable research and design into technological or scientific advances in products, processes or materials. The tax credits are very flexible and can be backdated up to three years or carried forward for twenty years.
The Canadian government also spends time, effort and dollars in promoting both Canada and the benefits of undertaking business and research within the country.
Canada's SR&ED tax program gave back in excess of $4.5 billion to qualifying countries in 2010. Large companies get refunds according to their taxable income and smaller companies, even small partnerships, receive back up to 35% of their R&D costs. All of the tax credits can be used against other taxes due. Small companies can receive all of these credits as refunds and larger companies (over $500k in revenue) can receive up to 40% as a refund.
Foreign companies undertaking research within Canada can also partake in the SR&ED Program if they have a Canadian subsidiary of their parent company or a Canadian controlled private corporation.
Through the National Research Council (NRC), the Canadian's government organization for research and development research within Canada is both championed and supported. The NRC directly reports to the Minister of Industry and enjoys both close consultation with the government and the ability to make decisions and laws that will affect R&D within Canada.
The NRC has placed itself as the Strategic Partner in Canadian Innovation and employs over 4,200 people all over Canada to support these aims. They provide substantial resources and assistance helping Canada become one of the world's top five R&D performers.
For over 90 years the NRC has helped help turn ideas, concepts and knowledge into new products, processes and services and these have gone forward to change the lives of Canadians and sometimes the world.
Canada has set forward its research and development priorities to be:
• Better health for all citizens.
• More sustainable solutions to the energy crisis.
• Technologies that will protect the environment.
They have also set out a number of national initiatives that respond to problems that Canadians face in their day to day lives.
This combination of innovative, flexible and generous tax credits coupled with a Canadian government backed National Research Council that has real, achievable aims and the ability to champion them makes Canada the ideal place to undertake research.
Canada's main tax incentive is called the SR&ED Program or the Scientific Research and Experimental Development program. It is a simple tax that provides tax credits for allowable research and design into technological or scientific advances in products, processes or materials. The tax credits are very flexible and can be backdated up to three years or carried forward for twenty years.
The Canadian government also spends time, effort and dollars in promoting both Canada and the benefits of undertaking business and research within the country.
Canada's SR&ED tax program gave back in excess of $4.5 billion to qualifying countries in 2010. Large companies get refunds according to their taxable income and smaller companies, even small partnerships, receive back up to 35% of their R&D costs. All of the tax credits can be used against other taxes due. Small companies can receive all of these credits as refunds and larger companies (over $500k in revenue) can receive up to 40% as a refund.
Foreign companies undertaking research within Canada can also partake in the SR&ED Program if they have a Canadian subsidiary of their parent company or a Canadian controlled private corporation.
Through the National Research Council (NRC), the Canadian's government organization for research and development research within Canada is both championed and supported. The NRC directly reports to the Minister of Industry and enjoys both close consultation with the government and the ability to make decisions and laws that will affect R&D within Canada.
The NRC has placed itself as the Strategic Partner in Canadian Innovation and employs over 4,200 people all over Canada to support these aims. They provide substantial resources and assistance helping Canada become one of the world's top five R&D performers.
For over 90 years the NRC has helped help turn ideas, concepts and knowledge into new products, processes and services and these have gone forward to change the lives of Canadians and sometimes the world.
Canada has set forward its research and development priorities to be:
• Better health for all citizens.
• More sustainable solutions to the energy crisis.
• Technologies that will protect the environment.
They have also set out a number of national initiatives that respond to problems that Canadians face in their day to day lives.
This combination of innovative, flexible and generous tax credits coupled with a Canadian government backed National Research Council that has real, achievable aims and the ability to champion them makes Canada the ideal place to undertake research.
EVAMAX Group has been in the SR&ED consulting business since 2003. We represent the clients to the federal government of Canada and provincial governments in obtaining SR & ED (Scientific Research & Experimental Development) refunds and credits.
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