Overview: Scientific Research and Experimental Development (SR&ED) Tax Incentives for Life Science Companies

If you are considering submitting a Scientific Research and Experimental Development (SR&ED) claim, this short video offers a brief overview of everything you'll want to know – including the types of organizations that qualify, what types of research and development (R&D) and related expenses are eligible, how much your business can expect to save and how to make a claim.

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SR&ED and Your Business: Fact Sheet

To learn whether your organization qualifies for the SR&ED tax incentive, what types of R&D and related expenses are eligible, how much your business can expect to save and how MNP can help, download our factsheet.

Scientific Research and Experimental Development Tax Incentives for Life Sciences Companies

As a Life Sciences company, you depend on R&D activities to create and deliver better processes, drugs and devices, innovate cutting edge technologies and form a better overall understanding of health and the living world. But these activities are also costly and resource intensive – leaving many potential discoveries out of reach; even with some of Canada's best and brightest minds at your disposal.

If your Life Science organization performs R&D to create new products or processes, you may qualify for the SR&ED tax incentive and obtain a potential refund of up to 66 percent of your costs.

Who Qualifies?

  • Canadian controlled private corporations (CCPCs, refundable)
  • Publicly owned corporations (non-refundable)

What Types of Research?

  • Basic research – advancement of knowledge, no practical application in view
  • Applied research – advancement of knowledge, practical application in view
  • Experimental development – technological advancement to create new materials, devices, products or processes

What Costs are Covered?

  • Salaries and wages
  • Canadian subcontractor payments
  • Materials consumed and transformed
  • Third-party payments
  • Overhead expenses

Ask a Question

Our team is available to discuss all aspects of the SR&ED tax credit program.

Whether you have a question about how your research and development activities would apply or would like to speak with one of our professionals to begin preparing a claim, we encourage you to connect with us.

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How MNP Can Help

MNP has extensive experience identifying potential SR&ED claims as well as preparing, filing and successfully defending those claims on our clients' behalf. We can support your business through all phases of the SR&ED application process to ensure you receive the maximum available tax benefit for your R&D activities.

Our team includes experienced life sciences researchers, engineers, information technology specialists and accountants. Each brings a unique perspective to your R&D activities and works closely with you to realize the greatest value from your SR&ED claims.

To find out what MNP can do for you, contact:

Jay McLean

Jay McLean, CPA, CMA, P.Eng, MBA

National Leader, SR&ED

Neha Tiku

Neha Tiku, Partner

SR&ED Leader, Ontario Region