Salaried expenditures are typically the key drivers to an SR&ED claim as they offer the highest rate of incentive return, followed by eligible material, subcontractor and capital equipment costs. The majority of salaries and sub-contract expenditures must be conducted within Canada to be considered an eligible expense.

If you are a Canadian controlled private corporation (CCPC), you can recover up to 82% of all qualified SR&ED salaries, in addition to other expenses such as materials, equipment and subcontractors. Non Canadian-controlled corporations and public companies also qualify but at a lower rate.

For more information on the SR&ED program or to determine if your company qualifies for the program, contact our local representative. Official SR&ED program information can be found at the Canada Revenue Agency Website:

http://www.cra-arc.gc.ca/taxcredit/sred/menu-e.html