What’s new – SR&ED Program
This Scientific Research and Experimental Development (SR&ED ) Program "What's new" page is organized by date. For information listed by year and by topic, go to the SR&ED Program archives.
The new Guidelines on the Eligibility of Work for SR&ED Tax Incentives, which have replaced the Eligibility of Work for SR&ED Investment Tax Credits Policy, provide clearer and simpler information about how SR&ED work is defined under the Income Tax Act. This will make it easier for businesses to assess whether their work is eligible for SR&ED tax incentives at the outset, before they apply.
As part of the federal 2020 COVID-19 measures, the filing due-dates for corporate income tax returns for tax year-ends from November 30, 2019, to February 29, 2020, were extended to September 1, 2020, which means the federal SR&ED reporting deadlines for these tax years has been extended to September 1, 2021. However, this extension does not apply to the British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit. For example, British Columbia and Nova Scotia corporations with a December 31, 2019 tax year-end should file their Forms T661, T2SCH31, T666 British Columbia (BC) Scientific Research and Experimental Development Tax Credit or T2SCH340 Nova Scotia Research and Development Tax Credit, and other relevant forms at the latest, June 30, 2021.
For more information go to British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit for tax year-ends from November 30, 2019, to February 29, 2020.
The Guidance: How the Canada emergency wage subsidy affects SR&ED claims is now available to help SR&ED claimants, who are also Canadian emergency wage subsidy (CEWS) recipients, determine how the CEWS might affect their SR&ED claim.
The Canada Revenue Agency has updated the following guide and it is available on Forms and publications:
- Guide T4088, Scientific Research and Experimental Development (SR&ED) Expenditures Claim - Guide to Form T661
The SR&ED Filing Requirements Policy has been updated on November 26, 2020.
The Canada Revenue Agency has updated the following forms and they are now available on Forms and publications:
- Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim
- Form T1145, Agreement to Allocate Assistance for SR&ED Between Persons Not Dealing at Arm's Length
- Form T1146, Agreement to Transfer Qualified Expenditures Incurred in Respect of SR&ED Contracts Between Persons Not Dealing at Arm's Length
The reporting deadlines for SR&ED claims have been extended due to COVID-19. For more information, read Extended SR&ED reporting deadlines.
Part 3 of Bill C-20, entitled Time Limits and Other Periods Act (COVID-19), recently received royal assent. If the minister of national revenue issues an order, the SR&ED reporting deadlines will be extended for up to six months starting from March 13, 2020, and not past December 31, 2020. Since this order has not yet been issued, claimants with a SR&ED reporting deadline on or after March 13, 2020, and who were unable to file an SR&ED claim because of the COVID-19 pandemic, are encouraged to file their claim on the expectation that such an order will be released. Claimants are encouraged to submit their SR&ED claims as early as possible, preferably with their income tax return. For more information on federal draft legislation amending the Income Tax Act that impacts on the SR&ED Program, go to Federal SR&ED legislative proposals status.
Reporting deadlines for the scientific research and experimental development (SR&ED) tax incentive program have not changed. Corporations still have 18 months after their tax year-end to file their SR&ED claim. For example, if your corporation had a December 31, 2018, tax year-end, you have until June 30, 2020, to file your SR&ED claim. However, businesses are strongly encouraged to file their SR&ED claim with their income tax return. Generally, the deadline for corporations to file their income tax return is six months after their tax year-end.
The Canada Emergency Wage Subsidy and the 10% Temporary Wage Subsidy for Employers are considered government assistance. Assistance received under either wage subsidy reduces the amount of expenses eligible for SR&ED investment tax credits and film and media tax credits. Additional information is available in the Canada Emergency Wage Subsidy application guide.
The Summary of Provincial and Territorial Research and Development (R&D) Tax Credits has been updated as at December 31, 2019.
The Scientific Research and Experimental Development Program v 3.0 – Privacy impact assessment summary has been posted.
The Scientific Research and Experimental Development – Success stories web page is now available. These stories provide examples of how the SR&ED tax incentive program benefits Canadian innovation. More stories will be added to this page.
Forms T2SCH31, Investment Tax Credit – Corporations, and T2SCH49, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit, have been updated with the 2019 federal budget measure of removing the previous year taxable income from the calculation of the SR&ED expenditure limit for a CCPC.
The SR&ED claims made by physicians and medical professional corporations – Information for claimants web page is now available. This page gives physicians and medical professional corporations information to help them prepare their SR&ED claim.
Budget 2019 – SR&ED Program
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