Our team of professionals work diligently to identify all the activities and costs that can be claimed for the different tax credit programs. We have also developed a series of effective strategies that we implement for our clients, which often result in significant additional benefits. Visit our Frequently Asked Questions to learn more about the opportunities and services offered by RTC Consulting.
The federal Scientific Research and Experimental Development (SR&ED) tax incentive program encourages Canadian and foreign businesses of all sizes and in numerous industry sectors to carry out SR&ED in Canada. This program is the main source of federal support for industrial-based SR&ED. To obtain a tax credit, a claimant must carry out SR&ED in Canada. For a project to be eligible, the company must seek a technological or scientific advancement by attempting to overcome a technological or scientific uncertainty. A systematic investigation is required, which includes formulating a hypothesis that is addressed through experimentation and analysis. Claimants may request SR&ED tax credits for expenses such as salaries, materials, subcontracts, and overhead expenses.
+The CDAE is a provincial tax measure designed to consolidate the development of information technologies (IT) throughout Quebec. It enables specialized corporations that carry out innovative, high-value-added activities in the IT sector to obtain a tax credit of an annual maximum of $25,000 per eligible employee. Information technology (IT) consulting services related to technology, to systems development, or to e-business processes and solutions that the company provides to a third party are eligible. However, the services must relate to the development, integration, maintenance/evolution of information systems, to technological infrastructures, or to the design/development of e-business solutions. Activities related to the development of security and identification services are also eligible.
+The tax measure is designed to encourage the production of Multimedia titles in Quebec through a refundable tax credit. A corporation may be eligible if it has an establishment in Quebec and if it produces eligible multimedia titles. Titles must be published in an electronic format and must be interactive. The results must also contain a substantive presence of three of the four following features: text, sound, still images and animated images. Other work related to a multimedia title produced by the claimant, such as digital animation, is also eligible.
+Depending on factors such as taxable income, a company may earn federal tax credits on qualified SR&ED expenditures at an enhanced rate of 35% or at a basic rate of 15%. Subject to certain rules, the same company may also be eligible for provincial tax credits that range from 4.5% to 30% of qualified SR&ED expenditures. Other expenses, such as subcontracting and materials, are also eligible. For CDAE credits, a company's eligible wage expenditures may represent a tax credit of 14% to 30% (24% refundable and 6% non-refundable). For the production of multimedia titles, a refundable tax credit up to 37.5% of qualified labour expenditures is available.
+It is important to qualify projects, activities and expenditures from the start. One must also be able to justify how an expense is related to the project claimed. The better a project is documented, the easier it will be to justify the expenses.
+Under normal circumstances, the CRA gives itself 120 days to process a complete SR&ED claim. First you must ensure your claim is in fact complete. Unfortunately, there may be many reasons why processing is delayed. It is important to follow up on tax credit claims after they are filed. With the claimant’s written consent, RTC Consulting can track your claim while it is being reviewed by the governments. This allows us to review any irregularities that could slow down or completely stop the file from being processed.
+Different issues can cause a file to be selected for audit. These include: a history of filing projects that do not qualify, claiming expenses that are considered unreasonable, and incomplete technical descriptions. A file may also be audited because your industry is considered to be at a higher risk of not meeting the program’s criteria. Greater scrutiny is placed on these types of files. Irrespective of these issues, a claimant’s files should not be audited year after year. It may be appropriate to have a tax credit specialist look into the matter to understand better why this is occurring.
+A consultant that has a clear and complete understanding of the tax credit programs involved. An ability to understand the nature of the technical work you, the claimant, perform and the ability to determine quickly what work qualifies for the tax credit you are claiming. Providing the client with the best service possible in both English and French during the preparation and filing of the tax credit claim. This covers everything from initial interviews to receipt of the tax benefits. Attention to detail! The result of all this allows us to maximize your tax credit claims while ensuring that the claims are eligible and reasonable for the CRA.
+Comme les lois fiscales, les politiques administratives et la mise en œuvre des programmes de RS&DE évoluent constamment, Experts-Conseils RTC assure le suivi de ces changements et prépare votre demande en conséquence. Nous croyons que nous pouvons donner à votre entreprise un avantage qui vous permettra d'obtenir les meilleurs résultats possibles dans vos réclamations de RS&DE.
+There are numerous financial institutions that provide tax credit financing. The terms and conditions vary, depending on the claimant’s financial risk. These lenders will often use our services to assess the value of and the risk associated with a potential tax credit application. We can also help you identify a financial institution for the financing of your tax credits.
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| Provinces | Provincial credit rate1 | Provincial credit refund?1 | Federal credit rate | Federal credit refund? | Combined credit rate1 |
|---|---|---|---|---|---|
| ALBERTA | 10% | YES | 35% | YES | 64.3% |
| BRITISH COLOMBIA | 10% | YES | 35% | YES | 64.3% |
| MANITOBA | 10% | YES | 35% | YES | 64.3% |
| NEW BRUNSWICK | 15% | YES | 35% | YES | 69.4% |
| NEWFOUNDLAND & LABRADOR | 15% | YES | 35% | YES | 69.4% |
| NOVA SCOTIA | 15% | YES | 35% | YES | 69.4% |
| ONTARIO | 8%+4.5% | YES/NO | 35% | YES | 66.5% |
| PRINCE EDWARD ISLAND | N/A | N/A | 35% | YES | 54.3 |
| QUEBEC | 30% | YES | 35% | YES | 73.75% |
| SASKATCHEWAN | 10% | NO | 35% | YES | 64.3% |
| NUNAVUT | N/A | N/A | 35% | YES | 54.3% |
| NORTH WEST TERRITORIES | N/A | N/A | 35% | YES | 54.3% |
| YUKON | 15%/20% | YES | 35% | YES | 69.4%/74.4% |
1 Certain conditions may apply, causing the rate to vary. The tax credit rates are based on salary expenses and the use of the proxy method. For more information call us at : (514)633-6888 or via email at info@rtc-consultants.com.
| Provinces | Provincial credit rate1 | Provincial credit refund?1 | Federal credit rate | Federal credit refund? | Combined credit rate1 |
|---|---|---|---|---|---|
| ALBERTA | 10% | YES | 15% | NO | 36.4% |
| BRITISH COLUMBIA | 10% | NO | 15% | NO | 36.4% |
| MANITOBA | 10% | YES | 15% | NO | 36.4% |
| NEW BRUNSWICK | 15% | YES | 15% | NO | 43% |
| NEWFOUNDLAND & LABRADOR | 15% | YES | 15% | NO | 43% |
| NOVA SCOTIA | 15% | YES | 15% | NO | 43% |
| ONTARIO | 4.5% | NO | 15% | NO | 29% |
| PRINCE EDWARD ISLAND | N/A | N/A | 15% | NO | 23.3% |
| QUEBEC | 14% | YES | 15% | NO | 35.2% |
| SASKATCHEWAN | 10% | NO | 15% | NO | 36.4% |
| NUNAVUT | N/A | N/A | 15% | NO | 23.3% |
| NORTH WEST TERRITORIES | N/A | N/A | 15% | NO | 23.3% |
| YUKON | 15% | YES | 15% | NO | 43% |
1 Certain conditions could apply, causing the rate to vary. The tax credit rates are based on salary expenses and the use of the proxy method. For more information call us at : (514)633-6888 or via email at ; info@rtc-consultants.com.