Revenu Québec R&D in Québec and Tax Assistance Measures

Transcription

1 Revenu Québec R&D in Québec and Tax Assistance Measures

2 For the past several years, the Québec tax system has provided for various measures designed to stimulate scientific research and experimental development (R&D) in Québec. In fact, the refundable tax credits, the tax holiday for eligible researchers and the deductions for qualified R&D expenditures are among the most generous incentives in the world.

3 Do you carry out R&D? The term "scientific research and experimental development" means systematic investigation or search that is carried out in a field of science or technology by means of basic or applied research undertaken for the advancement of scientific knowledge; experimental development undertaken in order to achieve technological advancement for the purpose of creating new materials, products, devices or processes, improving existing ones. Eligibility of work in support of R&D Eligible work includes basic and applied research, experimental development and R&D support work. R&D support work must be commensurate with the needs of the research or experimental development. Eligible support work engineering or design operations research mathematical analysis or computer programming data collection testing; psychological research. 1. Basic research is undertaken for the advancement of science without any practical application in mind. 2. Applied research is undertaken for the advancement of science with a practical application in mind.

4 Non-eligible work market research or sales promotion quality control or routine testing of materials, products, devices or processes research in the social sciences or the humanities prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas the commercial production of a new or improved material, device or product, or the commercial use of a new or improved process style changes routine data collection.

5 The various types of tax assistance Refundable tax credits All of the various credits are refundable. If you do not have income tax payable, the amount of the credits will be paid to you. If you do have income tax payable, the amount of the credits will be subtracted from your balance and will be considered as an instalment payment. The tax credit for salaries and wages is the most frequently claimed tax credit. In the case of an SMB, it may equal as much as 37.5% of the salaries and wages paid for R&D. The other tax credits are as follows: the tax credit for university research or research carried out by a public research centre or a research consortium, the tax credit for private partnership pre-competitive research, and the tax credit for fees or dues paid to a research consortium. These credits correspond to 35% of qualified expenditures. Tax holidays Foreign researchers, experts and professors, as well as foreign researchers on a postdoctoral internship may claim a total or partial tax holiday on their salaries or wages if they meet the requirements. Deduction of R&D expenditures R&D expenditures may be deducted under the Taxation Act, subject to special rules. Expenditures that are not deducted in a given taxation year can be placed in an account and carried forward to the subsequent years of your choice.

6 How to obtain R&D tax assistance Pursuant to an agreement reached by the federal and Québec governments, your application must first be analyzed by the Canada Revenue Agency (CRA), which determines whether your project meets the scientific eligibility criteria. If your project is eligible, the CRA so informs Revenu Québec. To obtain the tax assistance, you must complete the prescribed R&D forms and enclose them with your corporation income tax return. All of these documents are available at any Revenu Québec office or on Revenu Québec's website. Revenu Québec is required to protect the confidentiality of all information pertaining to R&D activities as well as the information in the tax file. List of forms Déduction des dépenses engagées pour la recherche scientifique et le développement expérimental (RD-222); Crédit d impôt relatif aux salaires R-D (RD ); Crédit d impôt pour la recherche universitaire ou la recherche effectuée par un centre de recherche public ou par un consortium de recherche (RD ); Crédit d impôt relatif aux cotisations et aux droits versés à un consortium de recherche (RD ); Crédit d impôt pour la recherche précompétitive (RD ); Crédit d impôt pour la recherche précompétitive en partenariat privé (RD ); Entente concernant la limite de dépenses entre sociétés associées (RD ).

7 Additional information Additional information is given in the brochure Tax Assistance for Scientific Research and Experimental Development (IN-109-V). It explains how to apply for tax assistance and the various types of assistance available. You can obtain the brochure and the forms on Revenu Québec's website at or you may call one of the numbers given at the end of this folder. This publication is provided for information purposes only. It does not constitute a legal interpretation of the Taxation Act or any other legislation.

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