Saskatchewan Research and Development Tax Credit

Overview of the Saskatchewan Research and Development Tax Credit program:

The Saskatchewan Research and Development (R&D) Tax Credit is a program designed to encourage businesses in Saskatchewan to invest in research and development activities. The program provides a tax credit that can be applied against Saskatchewan corporate income tax, helping to reduce the financial burden of R&D investments.

Benefits of the Saskatchewan Research and Development Tax Credit program:

• Qualifying R&D expenditures by Saskatchewan Canadian-controlled private corporations (CCPCs) will be eligible for a 10% refundable R&D tax credit for the first $1 million annual qualifying expenditures made on or after April 1, 2017;
• Qualifying R&D expenditures in excess of the annual limit, as well as qualifying expenditures by other corporations, are eligible for a 10% non-refundable R&D Tax Credit;
• The total refundable and non-refundable R&D Tax Credits that may be claimed by a corporation will be limited to $1 million per year;
• Tax Credit legislation can be found in Section 63.4 of The Income Tax Act, 2000.

Eligibility criteria of the Saskatchewan Research and Development Tax Credit program:

• To claim this tax credit, you will need to complete Schedule 403, which can be obtained from the Canada Revenue Agency (CRA). Submit this schedule to CRA when you file annual Saskatchewan corporate income tax return.
• Schedule 403: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2sch403.html