Tax Credit for Salaries and Wages (R&D)

A corporation carrying on business in Canada and carrying out scientific research and experimental development (R&D) in Québec on behalf of it may, under certain conditions, claim a tax credit in respect of eligible R&D wages and to certain counterparties that it has paid to third parties for performing R&D for the taxation year in which the R&D was performed.

• For eligible R&D salaries incurred by the corporation after June 4, 2014 and eligible expenditures incurred under a research contract entered into after June 3, 2014, the base rate of the tax credit is 14%. This rate may be increased to 30% if the corporation is a Canadian-controlled corporation with total assets for the preceding taxation year, including associated corporations, of $50 million or less. When the company's total assets are between $50 and $75 million, the 30% rate is reduced on a straight-line basis. The premium rate applies to expenses limited to $3 million.

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