Saskatchewan research and development tax credit

You can claim this credit if you have a permanent establishment in Saskatchewan, and you made eligible expenditures for scientific research and experimental development carried out in Saskatchewan.

The credit is equal to 10% of eligible expenditures. For expenditures incurred before April 1, 2015, this rate was 15%.

The credit is based on the sum of the corporation's eligible expenditures and on any repayments of government assistance that are related to eligible expenditures.

Refundability varies with the period the expenditure is incurred. Any unused non-refundable credit can be carried back 3 tax years and carried forward 10 tax years from the tax year in which you earned the credit.

You can renounce the non-refundable credit, in whole or in part, for an eligible expenditure incurred during the year, under subsection 63.4(13) of the Saskatchewan Income Tax Act, 2000.

Effective April 1, 2017, the following apply:

• Canadian-controlled private corporations (CCPCs) are eligible for a refundable tax credit on the first $1 million of eligible expenditures
• eligible expenditures that are more than this annual limit, and those incurred by non-CCPCs, remain eligible for a non-refundable credit
• a yearly maximum of $10 million for total eligible expenditures is set for refundable and non-refundable tax credits

The following table summarizes the eligibility criteria for refund:

For eligible expenditures incurred after March 31, 2015, and before April 1, 2017, the whole credit is non-refundable. 

For eligible expenditures incurred after March 31, 2012, and before April 1, 2015:

• the tax credit was refundable only for CCPCs, up to a maximum annual limit of $3 million in eligible expenditures
• eligible expenditures that were more than this annual limit, and all eligible expenditures incurred by non-CCPCs, were eligible for a non-refundable tax credit

Claiming the credit

File a completed Schedule 403, Saskatchewan Research and Development Tax Credit. For more details, see the schedule.

On line 645 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the refundable credit you are claiming.

On line 631 of Schedule 5, enter the amount of the non-refundable credit you are claiming.

Forms and publications

• Schedule 403, Saskatchewan Research and Development Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Saskatchewan (provincial site)