Maximizing SR&ED tax credits for tech companies - R&D partners

•Download as PPT, PDF•

1 like•536 views

The document provides information about the SR&ED program in Canada, which subsidizes eligible research and development expenditures to encourage innovation. It outlines the eligibility criteria for SR&ED projects and expenses as well as the application process and requirements. The SR&ED program could help technology companies fund their projects by providing refundable tax credits worth up to 67% of qualified research and development expenditures.

Maximizing Government
R&D funding
for tech companies
Debbie Frail, P.Eng., MBA
dfrail@rdpartners.com
© R&D PARTNERS 2015

Can SR&ED help your company?
© R&D PARTNERS 2015
• Does your team include creative technical people
developing new products / processes?
• Do you test ideas by building prototypes?
• Are you overcoming technical challenges to create
new or improved technology?
If you answered “yes” to any of these questions, then
the SR&ED program could help fund your project!

SR&ED Program
© R&D PARTNERS 2015
SR&ED Program
• Encourages innovation and leadership
• Subsidizes eligible R&D expenditures
• Managed independently within CRA
Best R&D Tax Incentive Program in the World
• Canada ranked among the best worldwide
Very Accessible Program for All Companies
• Over $3.5 billion Federal funding annually
• Over 20,000 businesses each year

SR&ED Project Criteria
© R&D PARTNERS 2015

Eligible SR&ED Activities
© R&D PARTNERS 2015
Eligible Activities
Core R&D
• Design
• Engineering
• Research
Supporting R&D
• Identification, objective
setting
• Data collecting
• Testing
Non-Eligible Activities
Routine Technical Activities
• Routine testing
• Addition of product
features
• Quality control
Commercial Activities
• Business planning
• Market studies
• Commercialization

SR&ED Project Timeline
© R&D PARTNERS 2015
TechnologicalUncertainties
Time
Product
Specifications
Preliminary
Studies
Market
Validation
Routine
Development
Technological
Iterations
Aesthetic
Modifications
Market
Implementation
SR&ED Project
Experimental
Development
Experimental
Testing

SR&ED Eligible Expenses
© R&D PARTNERS 2015
Admissible SR&ED Project Expenses
• R&D employee salaries
• Subcontracted R&D (80%)
• Materials consumed or transformed
• Related overhead (proxy vs. traditional)
Non-Eligible Expenses
• Employee remuneration other than salary
• Capital expenses
• Leasing expenses

Example (small business)
© R&D PARTNERS 2015
Eligible SR&ED Expenses:
Salaries 100 000 $
Sub-contractor fees 20 000 $
Materials consumed (testing) 10 000 $
Materials transformed (prototype) 20 000 $
Total expenses 150 000 $
SR&ED Tax Credit:
Provincial Tax Credits 21 000 $
Federal Tax Credit 80 500 $
Total Tax Credit (67%) 101 500 $

SR&ED Filing Timeline
Income Tax
Submission
Fiscal Year
End
CRA
Response
0 to 18 months Up to 4 months
SR&ED
Refund
1-4 months
Income Tax
Submission
Fiscal Year
End
CRA
Response
0 to 18 months Up to 4 months
SR&ED
Refund
1-4 months
Note: Assuming a CCPC and filed with original tax filing, provincial credit to follow (varies by province)
© R&D PARTNERS 2015

Application Requirements
• Technical: Brief report per project demonstrating
concurrence with SR&ED requirements
• Financial: Cost summary per project
• Tax forms: Professionally prepared and filed
within deadlines
• Documentation: List available substantiating
documents © R&D PARTNERS 2015

SR&ED Project Evaluation (CRA)
© R&D PARTNERS 2015
1.Technological uncertainty that could not be
removed by standard practice?
2.Hypothesis developed to attempt to remove
uncertainty?
3.Scientific method followed?
4.Technological advancement achieved?
5.Records of hypothesis tested and results kept?

Document, Document, Document:
• Project outline: measurable objectives / challenges
• Timesheets
• Project Logbooks
• Monthly reports
• Test reports, analysis, conclusions
• Contracts with all sub-contracted research
organizations
• Invoices with proof of payment
• Payroll records and T-4 summaries
SR&ED Best Practices
© R&D PARTNERS 2015

R&D Partners
Mission: R&D Partners is committed to providing
the highest level of service to meet client needs.
Team: Partners with over 25 years experience,
professional engineers and finance/tax experts.
Commitment: We strive to leverage our knowledge
base, and work hard to be an efficient and effective
member of our client’s team.
© R&D PARTNERS 2015

R&D Partners
© R&D PARTNERS 2015
Maximize your government
R&D funding, simplify your
life

Contact Us
© R&D PARTNERS 2015
Tel. : 800-500-7733
Email: info@rdpartners.com
www.rdpartners.com
Debbie Frail, P.Eng., MBA dfrail@rdpartners.com

So now that you’ve started a business and have everything figured out you’ve started to look at alternative financing options. The non-dilutive options are great but what are the options and how do you access this cash? We will walk you through the SR&ED tax incentive program and discuss IRAP, IDMTC and other government grants available to help you build your product(s). Alex Popa presented the answers to the following questions for DevFestYVR on Feb 21: -What you need to know about the SR&ED program. -How the SR&ED program applies to product and process development in the real world. -What does the SR&ED claim process look like – a detailed walkthrough. -How can I make this source of funding more reliable? -What are some of the government grants available to help lower the cost of building a product? A look at IRAP, IDMTC, and other sources of funding.

Innovation Funding Lunch & Learn May 13, 2014

Boast Capital

Everything You Need to Know About IRAP Funding

Boast Capital

NRC’s Industrial Research Program (IRAP) provides technical and business innovation advising, financial assistance, and industry connections to over 10,000 SMEs annually. Known as one of Canada’s best funding programs, IRAP offers financial assistance under 4 subprograms. This presentation covers: -What is IRAP and what funding opportunities are available -Who is eligible and what qualifies -How to prepare a successful IRAP claim -New updates and deadlines -How it works with the SR&ED program

Innovation Funding for Growth Oriented Companies in Calgary

Boast Capital

The Canadian Government provides over $7B in innovation funding each year and is considered one of the most generous countries for funding research, innovation, and experimentation. Learn more about a few of Canada's innovation funding programs during this exclusive Lunch & Learn. We'll cover the following topics: -Scientific Research & Experimental Development Tax Credit (SR&ED) presented by Jeff Christie, Boast Capital -TECTERRA presented by Richard Gorecki, TECTERRA -Mitacs presented by Eric Loo, Mitacs

SUCCESS STORY: Streamlining the Architectural, Engineering and Professional (...

GoLeanSixSigma.com

King County successfully creates internal partnerships to streamline procurement processes between agencies. Watch this 30 minute project presentation webinar featuring Kara Cuzzetto, a Continuous Improvement Manager. She talks about a successful project and how Wastewater Treatment Division and the Financial Business Operations Division helped to reduce lead time in Procurement efforts. Find more Lean Six Sigma Success Stories at goleansixsigma.com/success. Happy Improving!

Agile costs, but who's counting?

Scrum Australia Pty Ltd

The document discusses project accounting and agile project management. It provides definitions of project accounting and describes how it can track financial progress on projects. It also discusses how agile estimation in sprints can be correlated to financial reporting, and some common pitfalls and successes of large-scale agile implementations, using a case study of one organization's transition.

Apm portfolio management in local government - Tim Hopkins

Association for Project Management

Westminster City Council faces the challenge of making £100 million in annual savings over the next three years while maintaining and improving critical services. To meet this challenge, the Council established a Change Portfolio to manage the many projects aimed at transforming services and reducing costs. The Portfolio is aligned with the Council's governance structure and focuses on three pillars: prioritizing projects, monitoring progress, and assuring quality. Regular reporting allows senior managers to provide oversight and address any issues. The Portfolio Management approach aims to successfully deliver the savings targets and strategic goals through coordinated transformation of Council operations and services.

ONEIA IRAP PresentationONEIA

An upgrade from Vistex Release A to Release D resulted in issues because custom code was not migrated to standard code. This prevented new features from being used and caused deficiencies. To address this, DPC identified current issues, provided Vistex a list, and had workshops to assess recommendations. The overall recommendation is to remap and redesign processes in Release E using its full capabilities over a 4-6 month project. Next steps include reviewing Vistex's proposal in November and scheduling the upgrade if approved.

Portfolio management sample

Sandeep (Sandy) Muju

This document discusses portfolio management and innovation portfolio management. It outlines common issues with innovation portfolios such as a lack of visibility, inadequate prioritization of projects, and unclear strategic alignment. It proposes solutions like using a standardized format to collect project information, categorizing investments by type to align with objectives, and developing a risk/value matrix to prioritize projects. The document advocates developing strategy execution discipline through continuous monitoring and optimization of the portfolio. It also discusses how portfolio management can help a company called GX drive business innovation.

205360 integration with peoplesoft

p6academy

This presentation summarizes Western University's implementation of Primavera P6 and its integration with PeopleSoft. It discusses Western's goals to run all capital projects in Primavera P6 and integrate it with PeopleSoft's financial system. The presentation outlines Western's plan, which included using an implementation partner and mapping business processes. It provides results, noting the system went live in eight months for 10 strategic projects with no customization. Lessons learned included starting process mapping early and allowing time for finance integration. Tips included selecting a project leader, effective communication, and training users as needed.

Startup4Chinese @ GTA #6: How to get funding from Canadian government？

Ke Zheng

Guess how many kinds of wage subsidies, grants, contributions and financial assistance are provided by Canada government? The answer is 339 different programs! Amazing, isn't it? The inevitably following question is: how can I have a finger in the pie? As one of the most hard-working groups in Canada, we the Chinese rarely ask that question, which makes us miss considerable opportunities, sometimes crucial. To help you better understand these corporation benefits from the government, which essentially are out of the pockets of us taxpayers, and to claim what you deserve eventually, is the goal of this speech. To find more about Startup 4 Chinese @ GTA, please visit: http://www.startup4chinese.com

How to Govern Your Digital Development Portfolio

Stage-Gate International

Software development portfolios are becoming increasingly important for companies across all industries – to implement digital transformations of their products, services and business processes. Digital innovation expert Colin Palombo describes how executives can effectively govern these portfolios, focusing resources on the right priorities and balancing risk with reward. View the recording at https://www.stage-gate.com/blog/digtial_development_pt-1/

Use of Risk Maturity Model to Benchmark Project Health, 26 May 2016

Association for Project Management

hrl: overview of our services

hrl:

HRL Technology Group is a leading specialist testing, engineering and innovation services company based in Australia and SE Asia. Their vision is to dramatically improve customers' business performance through laboratory testing, engineering solutions, innovation partnerships, and expert technical advisory services. They focus on chemical, mechanical, metallurgical, and thermal testing as well as asset integrity, materials engineering, process engineering, and project implementation. HRL prides itself on its expert people and methodology which involves sharply scoping projects, identifying value, setting KPIs, and delivering commercial and technical benefits to customers.

What's new with R&D tax credits?

Jason Gendreau

Introduction to SR&ED

Ajay Bajaj

Innovation Funding for Growth-Oriented Companies - Oct 24, 2014

Boast Capital

The Canadian Government provides over $7B in innovation funding each year and is considered one of the most generous countries for funding research, innovation, and experimentation. Learn more about a few of Canada's innovation funding programs: -Scientific Research & Experimental Development Tax Credit (SR&ED), slides presented by James Suk, Boast Capital -Small Business Grants, slides presented by Stephanie Sang, Granted Consulting -Sustainable Development Technology Canada (SDTC) slides presented by Paul Austin, Regional Director of Partnerships

Altrui presentation

jaymehta2

The document discusses Canada's Scientific Research and Experimental Development (SR&ED) tax credit program. It offers tax credits worth up to 35% of qualified expenditures to encourage innovation. Eligible work includes research, experimental development, and supporting activities in science and technology. The program is claimed retrospectively through the tax system. Firms should describe their work's technological challenges and advancements to avoid audit. Altrui Consulting can help assess eligibility, write reports, optimize costs, file claims, and represent clients in audits to maximize SR&ED tax credits.

Altrui presentation

jaymehta2

The document discusses Canada's Scientific Research and Experimental Development (SR&ED) tax credit program. It offers tax credits worth up to 35% of qualified expenditures to encourage innovation. Eligible work includes research, experimental development, and related supporting activities. Excluded work includes marketing, sales, routine testing, and production. Claims can be made up to 18 months after the work is completed. The document provides guidance on qualifying activities, avoiding audits, preparing for audits, and claiming support costs. It introduces Altrui Consulting, which helps maximize SR&ED claims through eligibility assessments, report writing, and audit support.

Mergers & Acquisition Puzzle + Innovation Management

Sandeep (Sandy) Muju

The document discusses strategies for maximizing value from mergers and acquisitions (M&A) and managing innovation portfolios. It outlines challenges with M&A integration and portfolio management. Key steps in the M&A process are described, from due diligence to post-acquisition integration. Effective portfolio management involves gaining visibility, aligning investments, prioritizing projects, and developing execution discipline. Tools and approaches can help address common issues and improve the ability to create value through M&A and innovation portfolios.

SR&ED (Scientific Research and Experimental Development) Tax Credits 101

Boast Capital

This document summarizes an SR&ED tax credit automation software called Boast.AI. It helps companies automate their SR&ED claims to increase refunds while reducing time and audit risk. Boast's team of experts and proprietary software gather a company's technical and financial data to identify, categorize and track eligible R&D projects. This leads to larger claims and refunds for less effort than doing it manually. The document provides an overview of SR&ED benefits and qualification criteria for Canadian companies claiming refundable tax credits for research and development expenditures.

SR&ED: What you need to know about the changing landscape - MaRS Best Practices

MaRS Discovery District

Mastering SR&ED in British Columbia: Top Tips for Successful Claims.docx

Canadian SRED Solutions

Canadian SR&ED Solutions stands out as the premier SR&ED (Scientific Research and Experimental Development) consulting firm in Ontario, Canada. With a proven track record of successfully assisting businesses in claiming SR&ED tax incentives, their expertise is unparalleled. Our team of seasoned experts combines technical knowledge with tax expertise, ensuring that clients maximize their SR&ED claims while staying compliant with regulations. The SR&ED program is a Canadian tax incentive program designed to encourage businesses to conduct research and development activities. If you're looking to claim SR&ED in British Columbia, here are some tips to help you navigate the process effectively. Visit us at https://canadiansred.ca/regional-offices/british-columbia-sred/

A Crash Course in Canadian Non-Dilutive Funding

Boast Capital

This document provides an overview of various types of non-dilutive funding programs available in Canada for technology companies. It discusses programs from Futurpreneur, IRAP, MITACS, Alberta Innovates, TECTERRA, BCIP, SDTC, and bridge financing. The document outlines when each program can be accessed, eligibility requirements, funding amounts, and how SR&ED tax credits can be leveraged along with certain programs. It aims to help companies understand options for accessing non-dilutive capital at different stages from business plan through commercialization.

Grants and Tax Incentives for Software Research and Development

siliconcape

This document discusses various South African government grants and tax incentives available for software development companies, including the Section 11D R&D Tax Incentive, the Support Program for Industrial Innovation (SPII), and funding from the Technology Innovation Agency (TIA). It provides details on the qualifications, eligible costs, and claims processes for each. The Section 11D incentive offers a tax deduction on R&D spending, while SPII and TIA provide cash grants for pre-competitive product and technology development projects. The document aims to help software companies understand and take advantage of these financial support opportunities.

Everything You Need to Know to Claim & Finance Your R&D Tax Credits

Boast Capital

Boast and Espresso have teamed up to host a webinar titled “Everything You Need to Know to Claim for, and Finance Your SR&ED Tax Credits”. During this webinar we will cover what type of work technically qualifies for the program, the types of expenditures that you can recover, as well as the potential returns you could receive. Espresso Capital will also speak about different financing options available to be able to realize your SR&ED return in a timely manner.

Competition Briefing - Open Digital Solutions for Net Zero Energy

KTN

Canadian technology accelerator (CTA) overview 2013

Thierry Weissenburger

The Canadian Trade Commissioner Service manages the Canadian Technology Accelerators (CTA) in New York, San Francisco & Silicon Valley, Boston, and Philadelphia, global clusters for technology and entrepreneurship. This initiative provides those Canadian start-ups in information and communication technology, digital and social media, gaming, clean technologies, and life sciences with access to unique resources and contacts that foster their international growth. The CTAs make available free office space for three to six months where physical offices are located within existing business incubators. The CTAs help you to refine your business model, collect competitive intelligence, pursue key clients, access financing sources, and engage strategic partners.

PPT Audit Scotland, SIGMA Workshop on Digital Auditing for SAIs, Skopje, Nove...

Support for Improvement in Governance and Management SIGMA

This document discusses Audit Scotland's digital strategy and progress in digital auditing. It outlines challenges around culture, pace of change, and skills. It also summarizes efforts to develop digital auditing tools using data analytics and visualization, build a data warehouse, and provide training to staff. The strategy aims to help improve digital government in Scotland and modernize Audit Scotland's audit processes through innovative use of data and technology.

What's hot

DPC FORUM Vistex Upgrade

Phillip Uro

Portfolio management sample

Sandeep (Sandy) Muju

205360 integration with peoplesoft

p6academy

Startup4Chinese @ GTA #6: How to get funding from Canadian government？

Ke Zheng

How to Govern Your Digital Development Portfolio

Stage-Gate International

Use of Risk Maturity Model to Benchmark Project Health, 26 May 2016

Association for Project Management

hrl: overview of our services

hrl:

What's hot (7)

DPC FORUM Vistex Upgrade

Portfolio management sample

205360 integration with peoplesoft

Startup4Chinese @ GTA #6: How to get funding from Canadian government？

How to Govern Your Digital Development Portfolio

Use of Risk Maturity Model to Benchmark Project Health, 26 May 2016

hrl: overview of our services

Similar to Maximizing SR&ED tax credits for tech companies - R&D partners

What's new with R&D tax credits?

Jason Gendreau

Introduction to SR&ED

Ajay Bajaj

Innovation Funding for Growth-Oriented Companies - Oct 24, 2014

Boast Capital

The Canadian Government provides over $7B in innovation funding each year and is considered one of the most generous countries for funding research, innovation, and experimentation. Learn more about a few of Canada's innovation funding programs: -Scientific Research & Experimental Development Tax Credit (SR&ED), slides presented by James Suk, Boast Capital -Small Business Grants, slides presented by Stephanie Sang, Granted Consulting -Sustainable Development Technology Canada (SDTC) slides presented by Paul Austin, Regional Director of Partnerships

Altrui presentation

jaymehta2

Altrui presentation

jaymehta2

The document discusses Canada's Scientific Research and Experimental Development (SR&ED) tax credit program. It offers tax credits worth up to 35% of qualified expenditures to encourage innovation. Eligible work includes research, experimental development, and related supporting activities. Excluded work includes marketing, sales, routine testing, and production. Claims can be made up to 18 months after the work is completed. The document provides guidance on qualifying activities, avoiding audits, preparing for audits, and claiming support costs. It introduces Altrui Consulting, which helps maximize SR&ED claims through eligibility assessments, report writing, and audit support.

Mergers & Acquisition Puzzle + Innovation Management

Sandeep (Sandy) Muju

SR&ED (Scientific Research and Experimental Development) Tax Credits 101

Boast Capital

SR&ED: What you need to know about the changing landscape - MaRS Best Practices

MaRS Discovery District

Mastering SR&ED in British Columbia: Top Tips for Successful Claims.docx

Canadian SRED Solutions

A Crash Course in Canadian Non-Dilutive Funding

Boast Capital

Grants and Tax Incentives for Software Research and Development

siliconcape

Everything You Need to Know to Claim & Finance Your R&D Tax Credits

Boast Capital

Competition Briefing - Open Digital Solutions for Net Zero Energy

KTN

Canadian technology accelerator (CTA) overview 2013

Thierry Weissenburger

PPT Audit Scotland, SIGMA Workshop on Digital Auditing for SAIs, Skopje, Nove...

Support for Improvement in Governance and Management SIGMA

IT Strategic Planning.pptx

Ajay Gangakhedkar

The document discusses the importance of IT strategic planning for businesses. It explains that technology must provide a stable foundation for businesses to operate on and facilitate innovation to remain competitive. Strategic planning helps ensure business and IT are aligned, resources are focused on key priorities, and short-term solutions are avoided. The planning process involves aligning IT capabilities with business strategies, managing the IT portfolio, driving stability, and measuring performance. Factors like a company's industry, structure, and market volatility determine how often and in-depth strategic planning should occur.

Innovation Funding for Growth-Oriented Companies in Edmonton

Boast Capital

The Canadian Government provides over $7B in innovation funding each year and is considered one of the most generous countries for funding research, innovation, and experimentation. We share information about three of Canada's innovation funding programs during this exclusive Lunch & Learn at TEC Edmonton on February 3, 2015. These slides cover the following topics: -Scientific Research & Experimental Development Tax Credit (SR&ED) presented by Jeff Christie, Boast Capital -Mitacs research internships -NRC IRAP

Federal Incentives That Can Show You the Money

CBIZ, Inc.

Federal Incentives That Can Show You the Money As the country continues to fight its way out of the economic downturn, businesses and their owners are constantly looking for ways to increase cash flow. Several Federal tax incentives are available to help you meet this goal. Contrary to popular belief, you don’t need to be in a high-tech industry to benefit from the Research and Experimentation Credit. Nor do you need to place in service an entire “green” building to benefit from the Energy Efficient Commercial Buildings Deduction or other energy incentives. Even if your business currently isn’t producing taxable income, you may still be able to use these incentives to recover taxes paid in prior years or shelter future taxable income. This presentation discusses key elements of: • Research and Development Tax Credits • Domestic Production Activities Deduction • Energy Efficient Building Deduction Michael Silvio is Managing Director with CBIZ MHM, LLC. He leads the San Diego and Orange County offices’ Research & Development (R&D) and Energy Incentives Tax Credit Services Group. Visit http://www.cbiz.com for more information or http://www.cbiz.com/page.asp?pid=9199.

Innovation TVA Presentation Deck

Joe Scherrer

Innovation TVA is a management consulting firm that helps clients achieve revenue growth and business success. They provide business assessments, planning, funding support, and ongoing consulting and coaching. Their process involves 5 stages: 1) assessing the client's business model, 2) testing their business plan, 3) establishing a relationship agreement, 4) developing an operational plan, and 5) executing and measuring performance. Innovation TVA leverages its expertise in key sectors and relationships with partners and investors to help clients scale their business.

SBIR 101 by InterKn - Everything you need to know about America's Seed Fund

Stem

Are you developing innovative technology? Are you looking for funding for your R&D? Are you interested in pursuing an SBIR or STTR opportunity but aren't sure where to start? You've come to the right place! At InterKn, our mission is to educate entrepreneurs and researchers about alternative innovation funding. In this short presentation, we discuss everything you need to know about the SBIR Program and how you can use it to fund your project past proof-of-concept and on to a commercially viable product! For more free information on innovation funding resources, visit us at https://www.interkn.com.

Similar to Maximizing SR&ED tax credits for tech companies - R&D partners (20)

What's new with R&D tax credits?

Introduction to SR&ED

Innovation Funding for Growth-Oriented Companies - Oct 24, 2014

Altrui presentation

Mergers & Acquisition Puzzle + Innovation Management

SR&ED (Scientific Research and Experimental Development) Tax Credits 101

SR&ED: What you need to know about the changing landscape - MaRS Best Practices

Mastering SR&ED in British Columbia: Top Tips for Successful Claims.docx

A Crash Course in Canadian Non-Dilutive Funding

Grants and Tax Incentives for Software Research and Development

Everything You Need to Know to Claim & Finance Your R&D Tax Credits

Competition Briefing - Open Digital Solutions for Net Zero Energy

Canadian technology accelerator (CTA) overview 2013

PPT Audit Scotland, SIGMA Workshop on Digital Auditing for SAIs, Skopje, Nove...

IT Strategic Planning.pptx

Innovation Funding for Growth-Oriented Companies in Edmonton

Federal Incentives That Can Show You the Money

Innovation TVA Presentation Deck

SBIR 101 by InterKn - Everything you need to know about America's Seed Fund

More from Funding Roadshow

How to negociate #contracts as a #startup & do it like a boss

Funding Roadshow

The document provides advice about negotiating contracts effectively. It recommends emulating Warren Buffett's calm, rational approach to negotiations rather than Steve Jobs' emotional style. Contracts should have clear terms to avoid future disputes and litigation. Transparency in negotiations can be effective, and it's best to negotiate contracts between individuals rather than through teleconferences. The document also cautions against analogies and provides tips for when legal expertise is needed, such as for international contracts, indemnification, and limitations of liability.

"How does your tax structure evolve with your business?" - Simon Davari SdM A...

Funding Roadshow

This document discusses the evolution of tax structures for businesses from the start-up phase through expansion. It outlines the pros and cons of operating as an unincorporated business versus incorporating. Incorporating provides benefits like lower tax rates but also more compliance costs. As businesses grow, they may use holding companies which provide tax deferral, asset protection, and opportunities for income splitting. Holding companies allow for preserving tax attributes like paid-up capital and pushing debt down to the operating company level. The document also discusses considerations for expanding operations internationally through the use of holding companies and foreign subsidiaries.

ICT megatrends and opportunities for Canadian SMEs - Cybera/CANARIE

Funding Roadshow

This document discusses opportunities for Canadian small and medium enterprises (SMEs) in the growing internet and data-driven economy. It outlines key global ICT trends such as the rise of mobile data usage and growth of social media platforms. It then introduces DAIR, a government-funded cloud computing initiative that provides Canadian ICT startups with free access to network infrastructure, computing power, and storage resources to help them develop, test and prototype products more quickly. The document provides examples of startups using DAIR and estimates the significant cost savings it provides compared to commercial cloud providers.

My 10 big learnings on raising a $1.3M seed round - Rakesh Soni

Funding Roadshow

Rakesh Soni shares 10 key lessons he learned from raising a $1.3M seed round of funding for his company LoginRadius. The most important lessons are that fundraising is about building belief in the company's vision, having a compelling story backed by proof points is crucial, being bold gets attention, tire kickers waste time but valuation shouldn't kill deals, the hardest question is how the company differs from competitors, and urgency closes deals faster than passively waiting.

Tips of selling to the feds - PWGSC

Funding Roadshow

The document provides information on selling goods and services to the federal government of Canada. It outlines the role of the Office of Small and Medium Enterprises (OSME) in assisting small businesses through the procurement process. It describes opportunities for small and medium enterprises, how to find and bid on procurement opportunities, and the evaluation process for bids. Key points include how to build relationships, understand procurement procedures, and best practices for submitting competitive bids for contracts over $25,000 Canadian dollars.

How to pitch to angel investors - Don Magie

Funding Roadshow

This document provides advice for entrepreneurs seeking angel investment. It outlines important statistics about small businesses and angel investors in Canada. The author notes that in 2013 there were around 2100 identified angel investors who completed only 134 deals. The document then gives tips for entrepreneurs seeking angel funding, such as understanding your market and customers, having a compelling story, explaining the problem your business solves and how you will make money. It emphasizes the importance of customer validation, intellectual property, historical financials, and clearly explaining the funding request. The overall message is that entrepreneurs should be well-prepared and able to justify their business plans when seeking angel funding.

Understanding Funding - Fundica

Funding Roadshow

The document summarizes the key questions ("W's") to consider when seeking funding: Who provides funding and why? Different types of funders like grants, loans, angels, and VCs provide capital for various motivations like societal benefit, expected returns, and business models. What funding is available? Options include tax credits, grants, public/private loans, angels, and venture capital, each with different return expectations and minimum investment levels. When are you fundable? Traditional steps are to first seek government funding if eligible, then bank loans if cashflow and assets allow, followed by angel or VC investors once the core team and product are proven. The conclusion advises always moving from

More from Funding Roadshow (7)

How to negociate #contracts as a #startup & do it like a boss

"How does your tax structure evolve with your business?" - Simon Davari SdM A...

ICT megatrends and opportunities for Canadian SMEs - Cybera/CANARIE

My 10 big learnings on raising a $1.3M seed round - Rakesh Soni

Tips of selling to the feds - PWGSC

How to pitch to angel investors - Don Magie

Understanding Funding - Fundica

Recently uploaded

Innovative Uses of Revit in Urban Planning and Design

Chandresh Chudasama

Discover innovative uses of Revit in urban planning and design, enhancing city landscapes with advanced architectural solutions. Understand how architectural firms are using Revit to transform how processes and outcomes within urban planning and design fields look. They are supplementing work and putting in value through speed and imagination that the architects and planners are placing into composing progressive urban areas that are not only colorful but also pragmatic.

Cover Story - China's Investment Leader - Dr. Alyce SU

msthrill

In World Expo 2010 Shanghai – the most visited Expo in the World History https://www.britannica.com/event/Expo-Shanghai-2010 China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.

Negotiation & Presentation Skills regarding steps in business communication, ...

UdayaShankarS1

4 Benefits of Partnering with an OnlyFans Agency for Content Creators.pdf

onlyfansmanagedau

NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...

BBPMedia1

Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste

my Pandit

Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart

➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka

Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka

➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka

❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...

❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart

Income Tax exemption for Start up : Section 80 IAC

CA Dr. Prithvi Ranjan Parhi

Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...

➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka

Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine

CIOWomenMagazine

Garments ERP Software in Bangladesh _ Pridesys IT Ltd.pdf

Pridesys IT Ltd.

Pridesys Garments ERP is one of the leading ERP solution provider, especially for Garments industries which is integrated with different modules that cover all the aspects of your Garments Business. This solution supports multi-currency and multi-location based operations. It aims at keeping track of all the activities including receiving an order from buyer, costing of order, resource planning, procurement of raw materials, production management, inventory management, import-export process, order reconciliation process etc. It’s also integrated with other modules of Pridesys ERP including finance, accounts, HR, supply-chain etc. With this automated solution you can easily track your business activities and entire operations of your garments manufacturing proces

The Genesis of BriansClub.cm Famous Dark WEb Platform

SabaaSudozai

How HR Search Helps in Company Success.pdf

HumanResourceDimensi1

HR search is critical to a company's success because it ensures the correct people are in place. HR search integrates workforce capabilities with company goals by painstakingly identifying, screening, and employing qualified candidates, supporting innovation, productivity, and growth. Efficient talent acquisition improves teamwork while encouraging collaboration. Also, it reduces turnover, saves money, and ensures consistency. Furthermore, HR search discovers and develops leadership potential, resulting in a strong pipeline of future leaders. Finally, this strategic approach to recruitment enables businesses to respond to market changes, beat competitors, and achieve long-term success.

Best Competitive Marble Pricing in Dubai - ☎ 9928909666

Stone Art Hub

The latest Heat Pump Manual from Newentide

JoeYangGreatMachiner

𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬 Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.

TIMES BPO: Business Plan For Startup Industry

timesbpobusiness

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

my Pandit

Profiles of Iconic Fashion Personalities.pdf

TTop Threads

The fashion industry is dynamic and ever-changing, continuously sculpted by trailblazing visionaries who challenge norms and redefine beauty. This document delves into the profiles of some of the most iconic fashion personalities whose impact has left a lasting impression on the industry. From timeless designers to modern-day influencers, each individual has uniquely woven their thread into the rich fabric of fashion history, contributing to its ongoing evolution.

Recently uploaded (20)

Innovative Uses of Revit in Urban Planning and Design

Cover Story - China's Investment Leader - Dr. Alyce SU

Negotiation & Presentation Skills regarding steps in business communication, ...

4 Benefits of Partnering with an OnlyFans Agency for Content Creators.pdf

NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...

Zodiac Signs and Food Preferences_ What Your Sign Says About Your Taste

Satta Matka Dpboss Matka Guessing Kalyan Chart Indian Matka Kalyan panel Chart

Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Indian Matka

❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...

Income Tax exemption for Start up : Section 80 IAC

Dpboss Matka Guessing Satta Matta Matka Kalyan panel Chart Indian Matka Dpbos...

Ellen Burstyn: From Detroit Dreamer to Hollywood Legend | CIO Women Magazine

Garments ERP Software in Bangladesh _ Pridesys IT Ltd.pdf

The Genesis of BriansClub.cm Famous Dark WEb Platform

How HR Search Helps in Company Success.pdf

Best Competitive Marble Pricing in Dubai - ☎ 9928909666

The latest Heat Pump Manual from Newentide

TIMES BPO: Business Plan For Startup Industry

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

Profiles of Iconic Fashion Personalities.pdf

Maximizing SR&ED tax credits for tech companies - R&D partners

1. Maximizing Government R&D funding for tech companies Debbie Frail, P.Eng., MBA dfrail@rdpartners.com © R&D PARTNERS 2015

2. Can SR&ED help your company? © R&D PARTNERS 2015 • Does your team include creative technical people developing new products / processes? • Do you test ideas by building prototypes? • Are you overcoming technical challenges to create new or improved technology? If you answered “yes” to any of these questions, then the SR&ED program could help fund your project!

3. SR&ED Program © R&D PARTNERS 2015 SR&ED Program • Encourages innovation and leadership • Subsidizes eligible R&D expenditures • Managed independently within CRA Best R&D Tax Incentive Program in the World • Canada ranked among the best worldwide Very Accessible Program for All Companies • Over $3.5 billion Federal funding annually • Over 20,000 businesses each year

5. Eligible SR&ED Activities © R&D PARTNERS 2015 Eligible Activities Core R&D • Design • Engineering • Research Supporting R&D • Identification, objective setting • Data collecting • Testing Non-Eligible Activities Routine Technical Activities • Routine testing • Addition of product features • Quality control Commercial Activities • Business planning • Market studies • Commercialization

6. SR&ED Project Timeline © R&D PARTNERS 2015 TechnologicalUncertainties Time Product Specifications Preliminary Studies Market Validation Routine Development Technological Iterations Aesthetic Modifications Market Implementation SR&ED Project Experimental Development Experimental Testing

7. SR&ED Eligible Expenses © R&D PARTNERS 2015 Admissible SR&ED Project Expenses • R&D employee salaries • Subcontracted R&D (80%) • Materials consumed or transformed • Related overhead (proxy vs. traditional) Non-Eligible Expenses • Employee remuneration other than salary • Capital expenses • Leasing expenses

8. Example (small business) © R&D PARTNERS 2015 Eligible SR&ED Expenses: Salaries 100 000 $ Sub-contractor fees 20 000 $ Materials consumed (testing) 10 000 $ Materials transformed (prototype) 20 000 $ Total expenses 150 000 $ SR&ED Tax Credit: Provincial Tax Credits 21 000 $ Federal Tax Credit 80 500 $ Total Tax Credit (67%) 101 500 $

9. SR&ED Filing Timeline Income Tax Submission Fiscal Year End CRA Response 0 to 18 months Up to 4 months SR&ED Refund 1-4 months Income Tax Submission Fiscal Year End CRA Response 0 to 18 months Up to 4 months SR&ED Refund 1-4 months Note: Assuming a CCPC and filed with original tax filing, provincial credit to follow (varies by province) © R&D PARTNERS 2015

10. Application Requirements • Technical: Brief report per project demonstrating concurrence with SR&ED requirements • Financial: Cost summary per project • Tax forms: Professionally prepared and filed within deadlines • Documentation: List available substantiating documents © R&D PARTNERS 2015

11. SR&ED Project Evaluation (CRA) © R&D PARTNERS 2015 1.Technological uncertainty that could not be removed by standard practice? 2.Hypothesis developed to attempt to remove uncertainty? 3.Scientific method followed? 4.Technological advancement achieved? 5.Records of hypothesis tested and results kept?

12. Document, Document, Document: • Project outline: measurable objectives / challenges • Timesheets • Project Logbooks • Monthly reports • Test reports, analysis, conclusions • Contracts with all sub-contracted research organizations • Invoices with proof of payment • Payroll records and T-4 summaries SR&ED Best Practices © R&D PARTNERS 2015

13. R&D Partners Mission: R&D Partners is committed to providing the highest level of service to meet client needs. Team: Partners with over 25 years experience, professional engineers and finance/tax experts. Commitment: We strive to leverage our knowledge base, and work hard to be an efficient and effective member of our client’s team. © R&D PARTNERS 2015

16. Contact Us © R&D PARTNERS 2015 Tel. : 800-500-7733 Email: info@rdpartners.com www.rdpartners.com Debbie Frail, P.Eng., MBA dfrail@rdpartners.com

Maximizing SR&ED tax credits for tech companies - R&D partners

Recommended

Recommended

More Related Content

What's hot

What's hot (7)

Similar to Maximizing SR&ED tax credits for tech companies - R&D partners

Similar to Maximizing SR&ED tax credits for tech companies - R&D partners (20)

More from Funding Roadshow

More from Funding Roadshow (7)

Recently uploaded

Recently uploaded (20)

Maximizing SR&ED tax credits for tech companies - R&D partners