SR&ED Calculations
Here's how to calculate a basic SR&ED claim return:
| Steps |
| 1. Determine Qualifying Expenditures (salaries, sub-contractor
fees, or materials) |
| 2. Apply Proxy Method for Overhead to Eligible Salaries
(55%) *Alternatively, can calculate using traditional method |
| 3. Calculate Total Qualifying Expenditure Pool |
| 4. Calculate Provincial ITCs *See Provincial SR&ED Return Rates page |
| 5. Determine Federal Expenditure Pool (Remove Provincial Return from Total Qualifying Expenditure Pool) |
| 6. Calculate Federal ITCs *35% for CCPC; 15% for non-CCPC |
| 7. Add Provincial and Federal ITCs to Calculate Total ITCs Earned. |
Confused? We've created two case studies on the following pages to show you how these calculations work with 'real' numbers.