Claim SR&ED tax incentives - How to claim

How to claim

To claim SR&ED expenditures a corporation or an individual carrying on a business must file an income tax return and include a completed Form T661. Use Form T661 to provide technical information and to calculate the qualified SR&ED expenditures used for the investment tax credit.

Your business may also be eligible for one or more of the provincial and territorial R&D tax credits; see the Summary of provincial and territorial research & development (R&D) tax credits for more information.

How individuals can claim the SR&ED tax incentives

To claim SR&ED expenditures and the investment tax credit, with your income tax return, file completed:

You can report the SR&ED expenditures and investment tax credit no later than 12 months after your business income tax return is due. For more information on the SR&ED reporting deadlines see the SR&ED Filing Requirements Policy.

How corporations can claim the SR&ED tax incentives

To claim SR&ED expenditures, with your income tax return, file completed :

You can report the SR&ED expenditures and investment tax credit no later than 12 months after your corporation’s income tax return is due. For more information on the SR&ED reporting deadlines see the SR&ED Filing Requirements Policy.

Instructions to help complete the form

Use the T4088 Scientific Research and Experimental Development (SR&ED) Expenditures Claim - Guide to Form T661 for clear instructions to help you fill out the form.

Guide has 10 parts grouped into 5 components:

General information

  • Part 1: Fill out your identification and contact information.

Project information

  • Part 2: Provide details about the scientific or technological content of your work. Fill out a separate Part 2 for each project you are claiming.

Financial information

  • Part 3: Calculate the amount of your deductible expenditures for the purpose of calculating your net income.
  • Part 4: Calculate the expenditures that qualify for your investment tax credit.
  • Part 5: Calculate your overhead and other expenditures if you chose the proxy method.
  • Part 6: Break down the costs for each project you are claiming in the year.

Statistical information

  • Part 7: This information helps the Government develop statistics about the type of research and development done in Canada.
  • Part 8: Go over the checklist in Part 8 to make sure that your claim is complete before filing it.

Certifications

  • Parts 9 & 10: Provide information about your claim preparer and sign Parts 9 and 10 to certify that all your information is true, correct and complete.

Service standards

The CRA has the following service standards for processing SR&ED claims:

  • Refundable claims which have been accepted as filed, will be processed within 60 calendar days of the date we receive a complete claim.

  • Refundable claims selected for review will be completed within 180 calendar days of the date we receive a complete claim.

If you sent a complete SR&ED claim (refundable or non-refundable) before April 1, 2018, the previous service standards will apply. See Service standards for the SR&ED program before April 1, 2018.

For more information on service standards and success rate, go to SR&ED Program Service Standards.

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