Does your software development qualify for SR&ED?

March 06, 2020

Scientific research and experimental development (SR&ED) is probably the best known tax program in Canada’s tech ecosystem. And for good reason. This federal tax credit helps tech founders save money by allowing them to claim qualifying expenditures when they file their tax return. They can reduce their tax bill or—if they are not yet profitable—return real dollars to their bank account in many cases.

While tech leaders know about SR&ED, they often don’t know what development activities qualify. Think of SR&ED like an iceberg—many opportunities exist well below the surface.

To help you test your knowledge of SR&ED, we created this quiz outlining common research activities pursued by software companies. Some often qualify for SR&ED; others rarely qualify.

Be aware that eligibility is evaluated on a case-by-case basis. Consult your SR&ED consultant.

The information in this publication is current as of February 22, 2020.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.

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