The Benefits of the SR&ED Tax Credit in the Healthcare Industry

With the lingering effects of COVID-19, many healthcare companies across Canada have worked tirelessly to find remedies or invent products to protect Canadians. With over 3400 health care companies across Canada, their mission is to invest in our future. The Canadian Government continues to reward these efforts with the SR&ED Tax Credit Program.

The SR&ED Program offers up to almost 50% tax credits or a cash refund for qualified expenditures (rates may vary based on the company being CCPC or Non-CCPC). With an expiration date of 18 months from a company’s year-end, the tax credit aims to reward companies for their work carried out in the field of science or technology that is either basic research, applied research, and/or experimental development where there is uncertainty.

Within the healthcare industry, the focus on product development, the science of a formulation, and IT/software components can be eligible. Below are a few examples:

1. Developing and devising prototypes.
2. Developing processes for scale-up to full production.
3. Developing algorithms and software packages to support patient and staff systems.
4. Improve or further improve performance or functionality of a medical device, i.e., design and development or experimentally developing 3-D printing of medical devices.
5. Research and Development related to wireless monitoring or measurement devices.
6. Developing products that collect data, provide medical accuracy, and allow patients to link their data to their standard medical records.
7. Developing engineering solutions for robotic automation or developing software codes for the operation of a medical device, designing electrical equipment, and implementing processes or robotics.
8. Carrying out clinical tests conducted prior to commercialization and generating prototypes for testing and validation.

How Can Braithwaite Canada Assist
Braithwaite Canada takes a 7-step approach to maximize every R&D Tax Credit Claim filed to CRA (Detailed description of the 7-step approach).

1. Eligibility Criteria Scoping
2. Offer of Service & Presentation
3. Discovery/Preliminary Project Identification Stage & Documentation
4. Technological/Science Data Compilation Phase
5. Taxation/Financial Data Compilation Phase
6. Detailed Project Review & Finalization
7. Completion of SR&ED Submission by Braithwaite (Authorized CRA e-filer) and/or Your Accountant

For further information on how Braithwaite Canada can assist your company in successfully preparing an SR&ED Tax Credit claim to CRA, please contact us today.

Source: Crunchbase & Government of Canada