Canada Revenue Agency (CRA) administers the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program in which Canadian-controlled private corporation are encouraged to conduct their Research and Development in Canada.

In exchange for this, the CRA is giving an investment tax credit of 35% to the first $2 million of qualified expenditures; and 20% on the excess amount. In dollar terms, this can be a few thousand dollars or even millions. The program is very attractive especially to start-up companies because they can cut their R&D budgets in half and with little effort. This is not to say that qualifying for the program is a an easy task. In fact, there are certain requirements and criteria that must be met in order to become eligible for the tax incentive program. It is for this reason that hiring companies that offer SR&ED tax consulting services can help you determine your eligibility as well as your chance to actually be approved or accepted in the tax incentive program.

There is long list of companies that offer r&d tax credit consulting services so choosing the best company to address your problems and needs can be tricky. Of course, being the owner of the company, you should also do you homework by knowing which types of companies are eligible for the program. If you feel that your company is in that grey area where you cannot immediately say that you qualify, then you need SR&ED tax consulting services. Basically, if you are a Canadian and you own a company that is involved in technical activities, you are most likely to become eligible. However, you have to keep in mind that only innovators are qualified for the SR&ED. This means that if you are able to introduce a new product or a new knowledge, then you are guaranteed a spot in the program. Simply making use of an existing knowledge or a generally accepted process or idea will not cut it. If you are able to device a new plan or process that helps solve an age-old problem, you will also qualify. However, there are times when your actual R&D efforts may be adjudged ineligible because of certain conditions. When your qualification is bordering in that grey areas, it means you need r&d tax credit consulting services. The best SR&ED consulting firm can increase your chances of qualifying for the program even though it is contentious. This is not to say there will be cheating involved but rather a work around to show the CRA that your company has really discovered a breakthrough.

There are situations wherein companies feel that the SR&ED program will do little to the bottom line – results. On the contrary, qualifying for the SR&ED can help your company to sustain growth even through the critical first years. With help from SR&ED tax consulting services, you can determine if the program applies to your type of business. What’s more, outsourcing your SR&ED claim preparation can help you focus on your core business. Let the r&d tax credit consulting services do the paperwork and legwork for you, while you discover breakthroughs.