Understanding SRED in Canada

SRED stands for Scientific Research and Experimental Development. It’s the title of a tax incentive program by the government of Canada to try and incentivize companies in Canada to invest in research to make Canadian companies more competitive in the international market.

i.e. reward companies for investing in innovation.

• How does it work?

  • Basically it’s risk a company do the work and then demonstrate the work done meets SRED criteria. i.e. scientific method was involved, that scientific knowledge of the organization was advanced and that technical uncertainty existed.

  • What is not eligible?

    • It cannot be just be business uncertainty - i.e. is there a market for this product?