Newfoundland and Labrador research and development tax credit

• Refundable tax credit equal to 15% of eligible research and development expenditures.
• The credit must first be applied against taxes payable before any refund is issued.

• The applicant must have a permanent establishment in Newfoundland and Labrador.
• The applicant must have made eligible expenditures for research and development activities carried out in Newfoundland and Labrador.

Who is eligible?

• Corporations with a permanent establishment in Newfoundland and Labrador that incur eligible research and development expenditures in the province

Eligible expenses

• Expenditures for research and development activities carried out in Newfoundland and Labrador.

Eligible geographic areas

• Newfoundland and Labrador

• Step 1: Complete Schedule 301Fill out Schedule 301, Newfoundland and Labrador Research and Development Tax Credit, providing the required information on eligible research and development expenditures.
• Step 2: Calculate the CreditDetermine the amount of credit earned for the year based on 15% of eligible expenditures.
• Step 3: Report on Schedule 5Enter the amount of credit earned on line 520 of Schedule 5, Tax Calculation Supplementary – Corporations.
• Step 4: File with Corporate Tax ReturnSubmit the completed Schedule 301 and other required forms with your corporate income tax return.
• Ensure that your submission is filed no later than 12 months after your corporation’s filing due date.

• The credit is fully refundable but must first be applied to offset total taxes payable before a refund is issued.
• The claim requires submission of a completed Schedule 301 with your corporate tax return.
• Schedule 301 must be filed no later than 12 months after your corporation's filing due date.
• The amount of credit earned must be reported on line 520 of Schedule 5, Tax Calculation Supplementary – Corporations.