Sr&ed is the abbreviation for Scientific Research and Experimental Development Tax Incentive program. This basically is an initiative by the Canadian Revenue Agency aimed at encouraging scientific and research based businesses at all levels. The aim of this program is to give businesses that qualify refund and tax credits for their expenses in research and development activities in Canada.
Your business or project must be a scientific or research based. Designs, engineering or any science based project generally qualify for this program. Social science or humanity research project overall do qualify. Other projects that may be engineering based but still not qualify for funding includes mining, drilling and prospecting of minerals.
Projects that do not qualify may be research based but not scientific. For instance, research in humanities or social sciences most likely will not qualify for sr&ed tax credits. Others such as prospecting, drilling or mining of any mineral resources generally will not qualify. Research in sales, development that is based only on design or basic engineering concepts most likely will not be qualified under this program.
Once a project is approved, a number of filing requirements are necessary. Overall, any business will be required to file up to three documents. For individuals, it is necessary to file forms T661 and T2038. For corporations, they need to submit forms T2SC31 and T661. Generally, these forms can be acquired online or through the several CRA field offices located through out Canada.
Also if you have any queries or concerns, most likely the representatives in these offices should be able to address them. As a rule, always ask as many questions as possible when you meet these people. You want to be sure that there are no grey areas in your application. Having all the information is what will help you with this.
The Canadian Revenue Agency has set up help services to assist first time applicants go through this process smoothly and easily. They have an interactive websites where visitors get to see what is required to access these benefits. They also have field offices that applicants can visit incase they have any queries. Apart from this, monthly seminars are organized in various cities throughout the country to sensitize citizens about the program.
On the CRA website, you will be able to see helpful web tools. The clickable form T661 which can be accessed and filled over the internet in a fairly easy fashion is rather convenient. There are also guides and hints on the website that assist you on how best to fill the forms. Overall, it is advisable to visit field offices incase you encounter problems when filing these forms.
In a recap, filing and qualifying for Sr&ed tax credits and refund does not need to be a difficult task. To qualify, your business must be research or scientific based. You also must submit income tax return forms among other documentations. Visiting the Canadian revenue agency website, attending seminars, contacting field offices and trying to get as much information as possible about this program before you apply generally is wise.
Read more about A General Overview Of The Sr&ed Program visiting our website.