Infographic: Pre-claim approval

SR&ED Pre-claim approval

Pre-claim approval is a new, optional process that allows you to request a determination within 8 weeks from the Canada Revenue Agency (CRA) on whether your planned projects meet the definition of scientific research and experimental development (SR&ED).

Advantages

• Receive upfront approval of your planned SR&ED projects before work has started or costs have been incurred
• Complete your application in less than a day using existing documentation
• Meet with an SR&ED specialist, who will get to know you and your work

Eligibility criteria

Your business must:

• Operate in Canada
• Have less than $25 million in annual gross business income
• Be a Canadian- controlled private corporation, a Canadian corporation, or a partnership
• Be in good standing with the CRA

Projects must:

• Represent new work (must not be a project that has already been reviewed and received an eligibility determination)
• Address a scientific or technological uncertainty
• Involve a systematic investigation or search conducted within a field of science or technology through experimentation or analysis
• Not involve issues that are currently under objection or in litigation

Pre-claim approval process

1. Request a case number on Canada.ca
   • Existing SR&ED claimants: You will receive a case number in My Business Account within 2 business days.
   • New SR&ED claimants: You will receive a phone call from the CRA within 5 business days.
2. Apply in My Business Account
   • Don’t forget to include any relevant attachments, including project plans and other supporting documentation.
   • You can request pre-claim approval for up to 3 projects.
3. Meet with an SR&ED specialist
   • Existing SR&ED claimants: You may be contacted  to schedule a meeting with an SR&ED specialist.
   • New SR&ED claimants: You will be contacted to schedule a meeting with an SR&ED specialist.
4. Receive a determination from the CRA
   • If granted, your pre-claim approval will be valid for up to 3 years.
5. Submit your SR&ED claim after the work is undertaken
   • Claims containing only projects that were granted pre-claim approval and that are selected for an expenditure review, benefit from processing times that are cut in half, from 180 days to 90 days.

There is no appeal process for pre-claim approval determinations. If pre-claim approval is not granted, you can still submit a regular SR&ED claim after the work is undertaken. The CRA may review your claim to make sure you meet eligibility requirements.

Learn more about pre-claim approval: canada.ca/sred-pre-claim-approval