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Does your software development qualify for SR&ED?

Updated: February 01, 2023

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 returns. As a result, 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 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 do.

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

SR&ED or NOT SR&ED?

Find the qualifying activities below the surface.

Test your knowledge of SR&ED for software against this list of common situations. Some of these are often SR&ED; others are rarely SR&ED.

BDO can help.

We can help you find hidden SR&ED opportunities in your day-to-day workflows that save you money. 

Contact our SR&ED team to get started

The information in this publication is current as of February 1, 2023.

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.