The Scientific Research & Experimental Development (SR&ED) tax credit is a Canadian government incentive. It provides refundable and non-refundable tax credits to businesses conducting eligible R&D activities in Canada, helping them recover a portion of their research costs.

Many Canadian businesses performing scientific or technological research may qualify, including:

• Startups and small businesses (CCPCs)
• Tech companies and software developers
• Manufacturers and engineering firms
• Agriculture, biotech, and cleantech companies
• Other R&D-focused businesses

DIY SR&ED provides AI-powered tools and educational resources to help businesses file their own claims without hiring expensive consultants. Here’s how we assist:

• AI-powered insights optimize your claim for maximum returns
• Self-assessment tools make it easy to check eligibility
• Automated form generation reduces paperwork and errors
• Step-by-step guidance helps you maximize your refund
• Expert advice ensures you stay on the right track

Proper documentation is essential for a successful SR&ED claim. You’ll need:

• Technical documentation, including project descriptions, problem statements, and experiment records
• Financial records such as payroll data, subcontractor invoices, and material costs
• Supporting evidence, including time-sheets, R&D logs, and test results

The amount you receive depends on your business type and location. Here’s a breakdown:

• Canadian-controlled private corporations (CCPCs) can receive up to 35% of eligible costs refunded
• Non-CCPCs, including larger companies, can receive up to 15% in non-refundable credits
• Provincial credits vary by location, offering additional funding opportunities

Processing time depends on whether your claim is selected for review:

• Standard processing usually takes up to 2 months
• If the CRA reviews your claim, it may take up to 6 months
• First-time filers may need to go through an educational review before approval

Several key expenses qualify for SR&ED tax credits, helping businesses recover R&D costs:

• Employee salaries and wages directly related to R&D
• Subcontractor costs, with up to 80% claimable for Canadian-based R&D work
• Third-party payments to universities, research institutes, and hospitals, with up to 80% claimable
• Materials used or transformed in R&D experiments
• Overhead costs, claimable at 55% when using the proxy method

Not all claims are audited, but CRA reviews are common. To ensure approval:

• Prepare strong answers for the three key questions in Form T661
• Maintain proper records, including financial statements and technical reports
• Ensure consistency across all forms and reports to avoid discrepancies

Yes, you can file an SR&ED claim without a consultant if you prepare properly. To succeed:

• Understand the eligibility rules and ensure your project qualifies
• Have the right documentation, including financial and technical records
• Use the right tools to streamline the claim process and avoid errors