Yukon Research and Development Tax Credit

This tax credit provides financial support for research and development activities undertaken in the Yukon by both individuals and corporations. It aims to incentivize innovation within the territory through specific financial benefits.

• The credit is refundable if the amount exceeds your payable income tax.
• The credit equals 15% of total eligible expenses.
• An additional 5% of total eligible Yukon College expenses can be claimed.

Eligibility criteria for Yukon income tax measures include specific requirements for businesses and organizations operating within the territory.

• The organization must be an incorporated, private corporation.
• The organization must maintain a permanent establishment in the Yukon.
• The organization must have its head office located in the Yukon.
• The organization must pay at least 25% of its salaries and wages to Yukon residents.
• The organization must not exceed $100 million in assets.

Who is eligible?

There are eligible types of companies for the Yukon Business Investment Tax Credit:

• Incorporated, private corporations operating in Yukon
• Companies with a permanent establishment and head office in Yukon
• Organizations paying at least 25% of salaries and wages to Yukon residents
• Companies with assets not exceeding $100 million

Who is not eligible

Some types of companies may not be eligible for the grant based on specific criteria. These include companies that do not meet the residency requirements or do not engage in eligible investment activities.

• Companies that do not meet the residency requirements
• Companies that do not engage in eligible investment activities

Eligible expenses

The eligible expenses for the research and development tax credit are those associated with the scientific research and experimental development work conducted in the Yukon.

• Total eligible expenses for scientific research and experimental development.
• Additional eligible expenses related to projects at Yukon College.

Eligible geographic areas

This grant is specific to individuals and corporations that have ties to the Yukon region. The eligibility criteria are aligned with the requirements for operations and residency within the Yukon.

• Individuals who are residents of Yukon on the last day of the taxation year.
• Corporations that maintain a permanent base in Yukon.

There are evaluation and selection criteria for this grant. The criteria include eligibility based on age and residency, organization requirements, maximum claim limits, and timelines for filing.

• Applicants must be 19 years or older and Yukon residents.
• Eligible organizations must be incorporated, have a permanent establishment in the Yukon, and meet specific asset and payroll criteria.
• The maximum claim for the tax credit is $25,000 per year.
• Unused amounts can be carried back 3 years or forward 7 years.
• Claims must be filed with the appropriate documentation within specified timeframes.

Here are additional relevant details for Yukon's income tax measures:

• The Canada Revenue Agency (CRA) is responsible for administering Yukon's personal and corporate income tax.
• The Yukon child benefit program is integrated into the Canada child benefit, adding a Yukon-specific amount to the monthly payment.
• The Yukon business investment tax credit allows tax credits for Yukon residents investing in eligible local organizations.
• The First Nations Income Tax Credit ensures that taxpayers on settlement land do not pay more tax than those on non-settlement land, supporting equitable tax distribution across different land types.
• The tax credits available, like the Foreign Tax Credit, help prevent double taxation on income earned abroad.
• Unused business investment tax credits can be applied retroactively for up to three years or carried forward up to seven years.