Scenario 1 / 4
Technology
Software and platform R&D
Employee salaries
$93 000
Contractor fees
$28 000
Consumed materials
$12 000
Related overhead
$17 000
Total expenses
$150 000
Estimated SR&ED amount
$52 500
Calculate your SR&ED potential
Discover how much SR&ED funding your business could unlock.
In under two minutes, get a quick estimate of your potential refund and see the real value of your R&D activities.
How it works
How the SR&ED tax credit works
SR&ED is a Canadian tax incentive program that rewards businesses for eligible research and development work. If your company is solving technical problems, testing new methods, or improving products, processes, or software, you may be able to claim a portion of those costs back through tax credits or refunds.
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$150K
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25K
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SR&ED scenarios
Scenario 2 / 4
Manufacturing
Product and process testing
Employee salaries
$124 000
Contractor fees
$41 000
Consumed materials
$36 000
Related overhead
$24 000
Total expenses
$225 000
Estimated SR&ED amount
$78 750
Scenario 3 / 4
Life Sciences
Prototype and validation work
Employee salaries
$158 000
Contractor fees
$52 000
Consumed materials
$21 000
Related overhead
$29 000
Total expenses
$260 000
Estimated SR&ED amount
$91 000
Scenario 4 / 4
Advanced Engineering
Large multidisciplinary R&D
Employee salaries
$212 000
Contractor fees
$67 000
Consumed materials
$44 000
Related overhead
$37 000
Total expenses
$360 000
Estimated SR&ED amount
$126 000
Frequently asked questions about SR&ED
Find quick answers about eligibility, expenses, documentation, and potential SR&ED refunds.
What is SR&ED?
SR&ED is a Canadian tax incentive program that supports companies doing eligible research and development work, including experimentation, technical problem-solving, and product or software improvement.
Who can qualify for SR&ED?
Canadian businesses in sectors such as technology, manufacturing, engineering, and life sciences may qualify if they are developing or improving products, processes, or software through technical experimentation.
What expenses can be claimed?
Common eligible expenses include employee salaries, contractor fees, consumed materials, and certain overhead costs directly related to SR&ED activities.
How much can a company recover?
The amount depends on your eligible costs, your corporate structure, and where the work is performed. For many businesses, SR&ED can represent a meaningful refund or tax credit each year.
Do you need to be profitable to benefit?
No. Eligible companies may still benefit from SR&ED even if they are not yet profitable, depending on their tax position and corporate setup.
What documentation should you keep?
You should keep project notes, technical records, test results, payroll details, contractor invoices, and supporting financial documents that show how the work and costs relate to SR&ED.