What activities qualify for SR&ED?

Research and Development Tax Credit

If you have developed technically-innovative products then you likely have encountered technical problems. You will therefore likely qualify for SR&ED! The critical issue is whether you generated new technical knowledge by systematically investigating problems that were unresolvable by applying existing knowledge.

Work must be performed in Canada by Canadians.

SR&ED-eligible activities:

  • experiments and analysis;
  • design, analysis, data collection, and research;
  • technical support (but not for customers);
  • technical documentation for internal use;
  • equipment & materials (but not maintenance);
  • direct supervision of other technical employees

Marketing and other non-technical activities do not qualify for SR&ED:
  • sales, promotion, marketing and advertising
  • business plan preparation
  • customer support
  • user documentation

Most companies are mystified by the academic prism that CRA uses to determine eligibility. Intimidated by the paperwork? Not all salaries, contract payments, leases, or capital expenditures qualify! This is a grey area, particularly in software and IT. Qualified experts may disagree over whether work constitutes routine application software development, or whether it qualifies for SR&ED.

We'll collaboratiely prepare the documentation that CRA requires.You may use templates that I'll customize for your circumstances, to determine the portions of salaries and contractor fees that qualify for SR&ED. We'll describe your technical obstacles, solutions, and work performed in 4 pages. To be compelling, we must be clear, concise, and complete. We want CRA's reviewers to approve your SR&ED claim without requesting a review. See SR&ED in a Nutshell..

Research and Development Tax Credit

SR ED Consultant

Richard Moore

Electrical Engineer, MBA

Former CRA Reviewer
tel. 604-331-4688

SR ED Consultant

Violeta Zohar Fiszbaum

Chemical Engineer

Technology Incentives Inc.
4639 West 3rd Ave.
Vancouver, B.C.
V6R 1N5

Research and Development Tax Credit