Whether or not you were profitable, you would still see the SR&ED program as being beneficial for your company.
The federal SR&ED program provides cash refunds and/or tax credits for the work that you have done. If you weren’t profitable and you did not pay taxes, you would be receiving a cash refund from the federal SR&ED program.
The provincial SR&ED programs vary – some of them provide both refundable and non-refundable tax credits, whereas some provide only one or the other. In the case of refundable tax credits, you may receive cash through the provincial programs.
So even if you were not profitable in the past year, it is definitely worth taking a look at the SRED program, as it can provide you with much needed cash flow that you can invest back into your business.
Contact us to learn more.
